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According to a recent report by the Wall Street Journal, which was subsequently relayed by Reuters, Saudi Arabia has purportedly initiated early conversations with Tesla, the American electric car manufacturer, about establishing a manufacturing plant in the kingdom. This claim is based on unnamed sources familiar with the situation.

The news emerged not long after Turkish President Tayyip Erdogan reportedly reached out to Tesla's CEO, Elon Musk, suggesting he construct a car manufacturing unit in Turkey. This was a claim made by the directorate of communications in Turkey. Moreover, the report indicated that Musk was scheduled to meet the Israeli Prime Minister, Benjamin Netanyahu, in California.

The Wall Street Journal went on to detail that Saudi Arabia has been attempting to attract Tesla by offering privileges to obtain certain metals and minerals essential for Tesla's electric vehicles. These minerals might be sourced from countries like the Democratic Republic of Congo.

With an ambition to diversify its economy beyond oil, Saudi Arabia's sovereign wealth fund holds a major stake in Lucid Group, an electric vehicle start-up aiming to contest Tesla's industry lead. The WSJ article also suggested that the kingdom might provide financing to commodities trader Trafigura for a cobalt and copper project in Congo, which could cater to a potential Tesla factory.

However, in light of this news, Elon Musk, Tesla's CEO, promptly denied these reports in a tweet, effectively labeling them as false.

Though Reuters and the Wall Street Journal had published these assertions, Elon Musk's response introduces skepticism and advises caution when considering the accuracy of such claims. Tesla has previously stated that by the conclusion of 2023, a decision will likely be made about the location of a new factory.

The company currently operates six factories, with a seventh being constructed in northern Nuevo Leon state, Mexico. Their aim is to amplify their sales to 20 million vehicles annually by 2030 from around 1.3 million in 2022.