What's Going On With Tesla Stock?

Tesla Inc TSLA shares are moving lower Monday morning. New reports suggest the company is in early talks with Saudi Arabia for a new vehicle factory.

What To Know: According to a Wall Street Journal report citing people familiar with discussions, Saudi Arabia has been talking to Tesla about setting up a new manufacturing facility in the country as part of its push to diversify away from oil.

The report indicates the deal could be complicated, given the Saudis' existing partnership with rival Lucid Group Inc LCID. Saudi Arabia's Public Investment Fund is Lucid's majority shareholder with an approximate 60% stake in the EV maker. 

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A deal with Saudi Arabia could help Tesla ramp production, as well as secure increased access to metals and minerals needed to manufacture EVs. People familiar with the matter reportedly said a potential deal could include the right to purchase certain quantities of metals from countries including the Democratic Republic of Congo.

Tesla has set a goal of selling 20 million vehicles annually by 2030. Over the weekend, the EV maker took to X, formerly Twitter, to announce that it produced its 5 millionth vehicle. 

See Also: As Tesla Makes 5 Millionth EV, Chinese Rival BYD Hit A Milestone Of Its Own With The Yuan

TSLA Price Action: Tesla shares initially spiked on the WSJ report before pulling back and turning negative. The stock was down 0.98% at $271.71 at the time of publication, per Benzinga Pro.

Photo: courtesy of Tesla.