Saudi's PIF fund could invest in Tesla rival Lucid

PIF, the Saudi Arabian sovereign wealth fund that Tesla's CEO Elon Musk said would secure the $72bn funding to take the carmaker private, is in talks to invest in rival company Lucid Motors, according to reports.

The fund could invest up to $1bn in Lucid Motors to obtain majority ownership, sources told Reuters, with PIF interested in investing in electric car makers to diversify from the oil market.

The anonymous sources also said the talks could fall through and not result in a deal.

The Saudi sovereign fund holds $250bn in assets, of which Elon Musk was hoping $72bn would go to Tesla.

Musk announced earlier this month via Twitter that he was considering taking the company private at $420 per share and assured the funding was secured. He later on explained that there had been negotiations with the PIF regarding this funding. The company is now facing an inquiry regarding the truth behind Musk’s tweets.

The deal with Lucid Motors could be more in line with the fund since it would require a smaller investment. The PIF has already committed to other technology firms or investment in their move to diversify from the oil market including a $45bn deal with Japan’s SoftBank.