[Poll] - Saudi Arabia investment a conspiracy to control and crush Tesla?

[ggnykk]

With Saudi Arabia already having 5% stake in Tesla and they plan to increase their stake even more with Tesla go-private deal, Saudi will own a big portion of Tesla (probably will still be less than 20% owned by Elon though). Saudi claims that they are just diversifying their oil investment and also for hedging purposes. But I can't help to think that Saudi actually has darker motives behind this decision other than diversification and hedging. Should Elon accept Saudi money into the go-private deal? Is this part of Saudi conspiracy plan to take control and then crush Tesla in the future?

Please comment/discuss and vote!

 

[Zythryn]

Saudi knows that there will be an end to oil. And since they aren't obsessed solely with this quarters returns, they are planning ahead.
Being an owner in a world leading electric transportation and storage company makes sense.

Want to lessen Saudi's influence? Buy more stock, or better yet, get other countries to up their game.

 

[Buggle]

With Saudi Arabia already having 5% stake in Tesla and they plan to increase their stake even more with Tesla go-private deal, Saudi will own a big portion of Tesla (probably will still be less than 20% owned by Elon though). Saudi claims that they are just diversifying their oil investment and also for hedging purposes. But I can't help to think that Saudi actually has darker motives behind this decision other than diversification and hedging. Should Elon accept Saudi money into the go-private deal? Is this part of Saudi conspiracy plan to take control and then crush Tesla in the future?

Please comment/discuss and vote!

Where's the "we really don't need another thread on this topic" vote button?

 

[ggnykk]

Where's the "we really don't need another thread on this topic" vote button?

well, there is no poll in other related thread, haha.

 

[cityberty]

How will this pass CIFIUS review? Same with Tencent. Also it is my understanding that Tesla shares some R&D with SpaceX that makes it even more unlikely for it to happen.

Tesla may still go private but not with Saudis

 

[BerTX]

They have lots of open land and lots of sunlight. They have lots of tankers. They will take over Tesla to build solar panels to make power and batteries to fill the tankers, charge the batteries in Saudi Arabia and ship the electrons to America. Plug the tanker into the grid and make more trillion$.

 

[Graphene]

Saudi knows that there will be an end to oil. And since they aren't obsessed solely with this quarters returns, they are planning ahead.
Being an owner in a world leading electric transportation and storage company makes sense.

Completely agree with you on this. I've thought for some time that with the oil industry starting to decline it is only logical that they would diversify their wealth.

 

[ggnykk]

wow, most people actually believe that Saudi believe in the electric future. Surprising.

 

[nwdiver]

wow, most people actually believe that Saudi believe in the electric future. Surprising.

There are 2 or 3 Saudi Arabias. The Government / Royal Family is largely western educated and likely accepts climate change. The Theocrats have a tenuous relationship with the government and help keep the masses under control. My understanding is that the population is largely disaffected from the government and kept constrained with a combination of generous public assistance and a police state.

The Saudi Government like other middle east governments have been actively working to diversify their economies so they can survive the end of oil. They have a MUUUCH longer time horizon than an oil company so their motivations are vastly different. Jared Diamond points out in Gun, Germs and Steel that the longer time horizons is one of the rare advantages to less democratic governments... they plan for decades... not 4 or 6 years.

 

[buttershrimp]

Next Gen Supercharger.

 

[eye.surgeon]

The US has produced more oil than Saudi Arabia the last 4 years in a row. People have a very distorted view of who actually dominates the world oil market.

 

[nwdiver]

The US has produced more oil than Saudi Arabia the last 4 years in a row. People have a very distorted view of who actually dominates the world oil market.

.... yes, because as a member of OPEC they limit their output to reduce the price suppression of oil. Saudi Arabia has the 2nd largest reserves after Venezuela.

 

[eye.surgeon]

.... yes, because as a member of OPEC they limit their output to reduce the price suppression of oil. Saudi Arabia has the 2nd largest reserves after Venezuela.

Not exactly...
U.S. Has World’s Largest Oil Reserves | OilPrice.com

The US also limits their output, the difference being it is limited by the free market. The higher the price the more the US produces. Saudi limits their production based on centralized management of the economy. Self-reported reserves from non-democratic, managed economies are notoriously unreliable.

 

[nwdiver]

Not exactly...
U.S. Has World’s Largest Oil Reserves | OilPrice.com

The US also limits their output, the difference being it is limited by the free market. The higher the price the more the US produces. Saudi limits their production based on centralized management of the economy. Self-reported reserves from non-democratic, managed economies are notoriously unreliable.

'Rystad estimates that the U.S. holds 264 billion barrels of oil, more than half of which is located in shale.'

Not really much good to anyone if it costs more to extract it than you can sell it for... The breakeven cost of extracting shale is often >$100/bbl. Saudi oil is <$12.

 

[moemoke]

A few questions to ponder, just for fun.

How much are the Saudi's expected to spend to get a larger stake if Tesla goes private? I saw somewhere $64 billion
What is the return on investment for the Saudi's if they invest in Tesla? I guess if Tesla's losing money it is negative $
How much does Elon need to move to Mars?

They are expected to get $131 billion in oil revenue this year up 12% on last year so doesn't look like the increasing number of EV's
hasn't affected oil production.