Tesla Inc. (NASDAQ:TSLA) experienced a modest decline of 0.8% in its shares during pre-opening hours on Monday, following reports from The Wall Street Journal that the renowned electric vehicle company is currently in preliminary discussions to establish an assembly plant in the Kingdom of Saudi Arabia.
According to sources privy to these discussions, this move is part of Saudi Arabia’s broader initiative to secure essential metals for the manufacturing of electric vehicles (EV) and pivot its economy away from its traditional reliance on oil revenues. These discussions, however, are still at their infancy and could potentially dissolve.
The slight downtick in Tesla’s shares transpired after an intraday increase of more than 1% on Friday to $274.39, pushing ticker towards a two-month high.
Many market observers view Tesla as a major beneficiary of the ongoing UAW strikes impacting the Big 3 automakers – which are struggling with the transition to EVs – despite a 0.8% dip in the company’s shares during Monday’s premarket trading.
Notwithstanding this morning’s decline, Tesla’s shares – last changing hands above the $272 level – have seen an overall rise of 5.3% over the previous three months leading up to Friday, while the S&P 500 has seen a marginal increase of less than 1% during the same period.
In other Tesla news, Turkish President Recep Tayyip Erdogan on Sunday met with Elon Musk, the CEO of both Tesla and SpaceX, in New York. The occasion was part of Erdogan’s visit to the United States to attend the United Nations General Assembly. They convened at the Turkish House located in Manhattan.
In this meeting, Erdogan extended an invitation to Musk, urging him to establish his forthcoming Tesla manufacturing plant in Turkey.
Musk responded by stating that several suppliers from Turkey are already collaborating with Tesla. He further highlighted that Turkey stands as one of the most significant contenders for the location of his forthcoming factory.
Tesla is currently operating six manufacturing plants across the globe, with a seventh one under construction in Mexico. Musk has hinted at plans to identify a location for an additional factory by the end of the year.
Reports suggest that Musk has initiated conversations with authorities in India about the possibility of setting up a new plant dedicated to the production of affordable electric vehicles.
Turkey’s invitation obviously, indicates a positive trend for Tesla, further solidifying its position as a key player in the global EV market.
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