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Tesla Saudi Arabia Expansion Rumors Dismissed by Musk: EV News This Week

Conflicting reports emerged this week regarding Tesla’s potential Saudi Arabia expansion plans. The Wall Street Journal initially reported that Tesla was in preliminary discussions with the Saudi government about establishing a manufacturing facility in the country. The report highlighted potential challenges. Due to the complex relationship between Tesla’s CEO, Elon Musk, and Saudi officials, as well as Saudi Arabia’s existing collaboration with electric vehicle competitor Lucid Group.

Elon Musk Denies Reports of Saudi Expansion

If a deal were to materialize, it could significantly impact Tesla’s goal of selling 20 million vehicles annually by 2030, as suggested by Elon Musk. Achieving this objective might require around twelve additional manufacturing facilities worldwide. With current operations in the United States, China, and Germany, and plans to expand into Mexico.

However, the story took an unexpected turn when Elon Musk himself took to his social media platform to deny The Wall Street Journal’s report. The report was based on information from unnamed sources, acknowledging that talks between Tesla and Saudi Arabia were still in early stages and could potentially fall apart.

Shares of TSLA reached a weekly high of $272.13 on Wednesday before ending the week down 8%.

VinFast Impresses with Inaugural Report

Vietnamese automaker VinFast Auto is making remarkable progress. In its first quarterly report since going public in August, VinFast announced a staggering 131.2% increase in revenue. The company reported Q2 revenue of 7.95 trillion Vietnamese dong ($327 million) for the period ending on June 30th. This impressive growth can be attributed to a substantial surge in deliveries, with 9,535 vehicles delivered during the second quarter, marking a more than fivefold increase compared to the first quarter. In the first half of the year, VinFast reported a total of 11,315 deliveries, showcasing its expanding presence in the electric vehicle market.

Tesla Saudi Arabia

Despite previous losses, VinFast achieved a valuation of approximately $85 billion upon its Wall Street debut. Surpassing the valuations of U.S. automakers Ford and General Motors. This surge was fueled by increased delivery volume and reductions in research and development expenses, leading to a reduction in net loss.

VinFast CEO Thuy Le also revealed plans to send the first batch of electric vehicles to Europe later this year, following regulatory approval. Approximately 3,000 VF8 crossover vehicles will be shipped to France, Germany, and the Netherlands during the fourth quarter from VinFast’s manufacturing facility in northern Vietnam. This marks a significant expansion, surpassing their previous target of delivering 700 vehicles by July of the previous year.

Shares of VFS ended the week down 3% to $15.63/sh.

EV Surge in Europe

Electric vehicles made significant strides in the European market in August. Data from the European Automobile Manufacturers Association (ACEA) revealed that slightly over 20% . This is of all new cars purchased in the European Union were fully electric. This marked the first instance where EVs constituted more than a fifth of total sales. With close to 1 million fully-electric vehicles sold in the EU over the initial eight months of 2023.

Volkswagen, Europe’s leading car manufacturer, reported a notable 21.2% increase in sales for August. Stellantis and Renault also experienced sales growth, with increases of 6.4% and 22.3%, respectively. The electric vehicle revolution continues to gain momentum in the EU market.

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Disclaimer: Please note that this article serves solely for informational purposes and should not be construed as financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.


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