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Saudi Arabia Invests in Tesla Rival Lucid

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Just a month back, Tesla CEO Elon Musk made an announcement on his twitter account that Saudi Arabia has offered to invest in Tesla to help the company go private. The claim was taken back when Elon Musk again officially stated that he has no plans to make the company private and Tesla will remain a public company. Reports indicate that Saudi Arabia denied the funds due to which Elon Musk had to change his plans.

However, what’s surprising is that just a month later, the Saudi Public Investment Fund has decided to invest $1 billion dollars in Lucid which is a competitor of Tesla. Lucid Motors Inc. which had delayed the plans of launching its ‘Air’ sedan can now start producing the car in 2020.

Lucid Motors Inc further revealed their plan to build a plant in Arizona and produce up to 20,000 units of the car in the first year.

The PIF investment in Lucid Motors Inc. may have its advantages but the timing of everything raises a lot of questions. What do you think might be the reason of Saudi Arabia not investing in Tesla and choosing Lucid instead? Do share your opinion with us.

 

 

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Perhaps because all Lucid models will be equipped with automatic fire extinguishers? Another reason may be that the makers of Lucid cars have no immediate plans to make self-driving cars. 

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While Elon Musk may be a genius and made huge leaps forward with Space X, he certainly is a mouthpiece on social media which may be construed as a being a liability. He posts first and thinks later. His latest escapade where he built a "submarine" to rescue the kids trapped in a cave in Thailand for example. One of the rescuers said Musks device was useless and Musk straight out called him a paedophile asking why any white man would ever be in Thailand other than wanting to abuse children. He did retract his comment but soon put it straight back out there which currently involves a lawsuit with the rescuer suing him for defamation. I love what the guy is doing but he's a straight up liability and I don't blame the Saudis for looking for something else to invest in. I believe the lack of Saudi confidence is what made Elon change his plans.

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Perhaps this was a big one for Tesla, as Elon has to step down now for 3 years and face 20m in fine

https://www.washingtonpost.com/business/2018/09/29/teslas-elon-musk-settles-with-sec-paying-million-fine-resigning-board-chairman/

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