Saudi Arabia has the whole Vision 2030 plan in motion. The general thrust is they want to diversify the country away from being a petrostate. The headline numbers for state investment in renewables are nothing to scoff at: https://www.bloomberg.com/news/articles/2018-01-16/saudi-ara...
I can’t find the link right now, but Bloomberg did a short ~30 minute documentary 4-5 years ago on Saudi efforts to build a biofuel research center.
I’d also posit that now is the ideal time to take money from the Saudis, if there ever was a time. The Aramco IPO is going nowhere fast, so a key pillar of Vision 2030 is dead in the water.
I’d humbly suggest that you read up on the Saudi youth bulge. Every Saudi receives an annual Alaska-style oil dividend. A huge portion of the youth population is unemployed. The thousands of US dollars paid out to each idle youth is not sustainable long-run, even if oil prices were to increase.
Assuming this Saudi deal is some kind of preferred stock or hybrid equity-debt structure, Tesla can probably get the most favorable terms possible from the Saudis because they are somewhat desperate at this point.
I can’t find the link right now, but Bloomberg did a short ~30 minute documentary 4-5 years ago on Saudi efforts to build a biofuel research center.
I’d also posit that now is the ideal time to take money from the Saudis, if there ever was a time. The Aramco IPO is going nowhere fast, so a key pillar of Vision 2030 is dead in the water.
I’d humbly suggest that you read up on the Saudi youth bulge. Every Saudi receives an annual Alaska-style oil dividend. A huge portion of the youth population is unemployed. The thousands of US dollars paid out to each idle youth is not sustainable long-run, even if oil prices were to increase.
Assuming this Saudi deal is some kind of preferred stock or hybrid equity-debt structure, Tesla can probably get the most favorable terms possible from the Saudis because they are somewhat desperate at this point.