Negotiations Between Tesla and Saudi Arabia to Establish Electric Car Factory

The Wall Street Journal reported today that Saudi Arabia is in early-stage talks with the American electric vehicle manufacturer Tesla to establish a factory in the kingdom. The report indicates that Saudi Arabia is trying to attract Tesla by offering it the right to purchase certain quantities of minerals and metals it needs from countries including the Democratic Republic of the Congo. Additionally, one proposal being considered by the kingdom includes providing financing to the giant commodity trading firm Trafigura to execute a stalled cobalt and copper project in Congo, which would help supply the potential Tesla factory with resources. A spokesperson for Trafigura stated that the company is exploring its options for the Motochi project in Congo amid rising costs and declining cobalt prices.