Tesla and Saudi Arabia... cooperation?
Are Saudi Arabia and Tesla Motors secretly working together on the development of electric cars? Elon Musk knows the answer to this question, but the chief executive officer of Tesla of course will not give it. What's going on? Little by little it is becoming clear that oil and other fossil energy sources have reached their peaks, and that alternative energy sources are taking their place little by little. The sharp decline in oil prices has surprised all the players on the market, but a country like Saudi Arabia has been particularly hard hit by the drop in oil revenues. Prince Mohammed bin Salman (photo), the new strong man in the Kingdom of Saudi Arabia, saw himself forced to announce particularly drastic measures to get the budget of his country in balance.
The IPO of Aramco
The deficit in the budget of Saudi Arabia has risen to 15% of GDP and so it’s high time some action was taken. The Saudi government is still good for 65% of the GDP of the country and that is a situation that is not sustainable in the longer term. Through a number of measures, that percentage should be reduced to 40%. The privatization of oil company Aramco has also been announced, and bringing a part of the shares of this very large company to the stock exchange must help fill the hole in the budget. Saudi Arabia is any case set for a particularly difficult period, and this at a moment when the country is also coming under increasing pressure in the United States of America because of the potential role of the government in Riad in the attacks of nine eleven. But what is the link with Tesla Motors?
Less oil, more alternative energy
Saudi Arabiawants to become less dependent on the exploration and the trading of crude oil in the future. The country will focus more on other energy sources, including solar energy. The message on this subject came on the same day that Tesla reported that 200,000 cars of the new Model 3 had already been ordered. The Saudis will without any doubt focus their economy in the future more on manufacturing and the production of electric cars will have an important role to play in this choice. So we do not exclude a secret agreement between Tesla Motors and Saudi Arabia over the production of electric cars. Such an agreement could thoroughly shake up the auto sector and totally reshape the car market in the years to come. Sooner than may have been thought, electric vehicles will conquer our roads. Saudi Arabia is in a hurry to find new sources of income, so the government of this country will do everything in its power to promote the coming of the electric car. A secret cooperation between Saudi Arabia and Tesla is also a logical one. | 28/04/2016 | Jos Sterk