Saudi PIF in talks to invest in aspiring Tesla rival Lucid

Saudi PIF in talks to invest in aspiring Tesla rival Lucid

The chief executive officer rebutted a post from digital-media mogul Arianna Huffington, who had urged him to take time off lest he fall short of his ambitions to change the world.

Investors have been rattled since Musk gave an alarming interview last week to the New York Times in which he said no one reviewed his tweet about taking the company private before he posted it. Since Musk first tweeted about going private on August 7, the stock has slid 20 percent, representing a loss of about $13.5 billion.

Musk has given no details of funding since saying in a blog on Tesla's website a week ago that he was in discussions with Saudi Arabia's sovereign wealth fund and other potential backers but that financing was not yet nailed down. Jia took over as CEO of Faraday late a year ago.

Now, the Tesla CEO's relationship with Grimes could be on the rocks, as the two appear to have unfollowed each other on Instagram, and Musk has unfollowed Grimes on Twitter.

Musk, who recently said he might take Tesla private, has added to those pressures with lofty projections for profits and production that the automaker often fails live up to.

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After the interview, Tesla ended up dropping 8% on the stock exchange.

Saudi Arabia's sovereign wealth fund may buy an electric auto maker competing with Tesla in the luxury vehicle segment, Reuters reports, citing unnamed sources.

Now that PIF may be negotiating another deal, Musk could be hard pressed to find the US$72 billion to take Tesla private, although he said probably two-thirds of current Tesla shareholders would stay with the company when it goes private, if it does.

Musk told The Times that he often faced a choice of insomnia or taking Ambien, a sedative used as a temporary treatment to sleep problems. Since then? Silence. There had been talk back in 2016 of a factory in Arizona and of a new headquarters facility in Silicon Valley last fall, but while Tesla has been going through production hell, Lucid seems to have been in suspended animation mode. As to Tesla's reasoning, Musk earlier this year said that it all comes down to generating as much cash in the short-term as possible.

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