After Turkey, Tesla is evaluating the possibility of establishing a new production facility with Saudi Arabia. The electric car manufacturer, chaired by Elon Musk, is in talks about where to build its 2nd factory in Europe and 7th factory worldwide.
President Recep Tayyip Erdoğan made an offer to the famous billionaire Elon Musk to establish Tesla's new factory in Turkey. Turkey is making great efforts to attract this investment. However, Tesla is interested not only in Turkey but also in other alternatives.
Talks with Saudi Arabia
Tesla CEO Elon Musk is expected to make an investment decision for the new production facility this year. After first meeting with President Erdoğan, Musk is now meeting with Israeli Prime Minister Benjamin Netanyahu. According to reports from the Wall Street Journal, Tesla and Saudi Arabia are in initial talks to establish a production facility in the kingdom.
Opportunities Offered by Saudi Arabia
Saudi Arabia offers Tesla the right to purchase metals and minerals that it can use in the production of its electric vehicles. These mines include those located in the Democratic Republic of Congo and other countries. These countries operate important mines, especially copper and cobalt. Saudi Arabia aims to invest in the electric vehicle industry as part of its strategy to move away from oil and supports Tesla's leadership in this field.
Tesla's Production Capacity
Tesla continues to grow rapidly and has set a goal of producing 2030 million vehicles per year by 20. Elon Musk announced that he would choose a new factory location by the end of 2023. Tesla, which currently has six active factories, is preparing to build its seventh factory in Mexico.
Difficulty Attracting Investment
Attracting investments from large companies like Tesla is part of a tough competition for every country. Companies may request some privileges such as tax advantages and incentives. But the real challenge comes from other countries struggling to attract the same investment. If Turkey wants to attract Tesla, it will need to offer more attractive offers than those offered by other countries.
Elon Musk's Denial
Yet another utterly false article from WSJ pic.twitter.com/sisFcxYKxI
- Elon Musk (@elonmusk) September 18, 2023
Elon Musk denied the allegations with a tweet on the subject. However, it is known that Tesla is rapidly continuing negotiations on the new factory location.