NEW YORK: This week, the Wall Street Journal (WSJ) reported that U.S. electric vehicle (EV) maker Tesla and Saudi Arabia are in early discussions on a potential EV factory in the Middle Eastern country.

On his account on social media platform X, Tesla CEO Elon Musk denied reports of the talks with Riyadh. Saudi Arabia's sovereign fund, the Public Investment Fund, has yet to respond to requests for comment.

By offering potential rights to supplies of the metals and minerals the company requires for its EVs from countries such as the Democratic Republic of Congo, Riyadh has encouraged Musk to build a facility in the kingdom.

Saudi Arabia is attempting to diversify its economy from relying on oil.

In May, Musk said that Tesla, which currently has six production facilities and is building its seventh in Mexico, will decide on a new location by the end of this year.

By 2030, the company aims to sell 20 million EVs annually, 1.3 million more than in 2022.