Saudi Channels $ 1 Billion to the Electric Car Project

Contrary to the expectations of many people, Saudi supreme wealth fund invested in a carmaker. The news came just after a few weeks when Musk the Tesla CEO made a statement that the empire would aid his company go private. Reuters report that more than $ 1 billion was pumped to the Silicon Valley innovator on Monday. As a consequence, Tesla stock fell immediately in reaction to the contradicting news about Saudi helping the firm privatizes. Besides, the $1 1billion loan was ironic to the situation that the kingdom planned to aid other investors. However, the case was not clear on whether the money was intended for the car project.

The funding infusion is a planned overthrow of the silver-tongued cars Newark, California. The companies’ leaders include some former Tesla senior managers. For instance, the engineer who was in charge of the Tesla Model S is also among the leaders. The designed vehicle demonstrated that the electrically powered cars could be pleasing, fast and beautiful apart from reduced air pollution. However, the move made by the oil-dependent kingdom is termed as bold since Saudi Arabia has counted on oil as a source of wealth. Despite being the world top crude exporter, Saudi appears determined to make broadened horizons to reduce dependency on the oil. The resolution comes after the promised multicolored market failed to materialize.

The first car expected from Lucid is a high expectation set on the Saudi Arabia funding. The first vehicle of the company is anticipated to be ready by the year 2020. The monetary aid Lucid expects will not only help them in their final touches of the car but also use the money in the completion of Casa Grande factory construction. The company targets to become manufacturers of 130000 vehicles per annum. The annual production will also get supported by the 2000 employees who the factory intends to employ by 2022. Although the preliminary cars will turn out more expensive with a figure of more than $100000, rendering the information given, Lucid will sell the electric vehicles at $52500. The charge battery will turn out as 240-400 miles, contingent on the extras ordered. In collaboration with Saudi the Lucid experiences the biggest venture.

On the other hand, reports suggest that securities and exchange commissions are probing into the revelation made by Musk. According to experts, the investigation is to prove whether the information given by Tesla through Twitter had truth in it. Nonetheless, Times indicated that the Saudi wealth sovereign endowment secured 5% of shares in Tesla. The estimated funds made by the kingdom are of $250 billion.