Saudi sovereign fund invests $1B in US electric car firm
DUBAI, United Arab Emirates — Saudi Arabia’s sovereign wealth fund invested over $1 billion Monday in an American electric car manufacturer just weeks after Tesla CEO Elon Musk earlier claimed the kingdom would help his own firm go private.
Tesla stock dropped briefly Monday in reaction to the news, the same day that the Saudi fund announced it had taken its first loan, an $11 billion borrowing from global banks as it tries to expand its investments. It wasn’t immediately clear if that loan money played a part in the electric-car investment.
The electric-car investment is a bold move for Saudi Arabia, an ultraconservative kingdom that for decades has relied on its oil wealth as the world’s top crude exporter. But previous splashy market-moving promises by the kingdom’s assertive Crown Prince Mohammed bin Salman have yet to materialize.
The Saudi Public Investment Fund said it would invest the over $1 billion in Newark, California-based Lucid Motors, an 11-year-old private company that has yet to bring a vehicle to market.