SWITCHING SIDES

Elon Musk’s Alleged Saudi Funder Might Back Rival

The Saudi fund and Lucid Motors have a $1 billion deal in the works.

Saudi Arabian wealth fund PIF, which Elon Musk cited as the buyer that could help him take Tesla private, might back Tesla’s rival Lucid Motors, according to Reuters. PIF and Lucid Motors have reportedly drawn up a contract in which PIF would invest more than $1 billion in exchange for majority ownership — but it is not yet clear if the deal will go through. The report casts doubt on Musk’s August 7 tweet, in which he stated that he had “funding secured” for his plan to take Tesla private at $420 a share. Reuters adds that Lucid Motors does not currently have any cars on the market, although it hopes to begin building a $100,000 electric sedan in late 2018. And while Tesla is currently making and selling electric vehicles, there have been significant problems with the new Model 3, which could jeopardize future funding deals.