Tesla CEO Elon Musk, who revealed the driving force behind his decision to take the EV company private might have a serious competition in the same palette.

The Saudi Arabian Sovereign Wealth Fund which approached Tesla nearly two years ago had put the thought of taking Tesla private on the table.

However, in the most recent development, reports suggest that the Saudi Fund is in talks to invest in aspiring Tesla rival, Lucid Motors Inc.

The discussions are in its most early stages and has a possibility to fall out.

In an update blog post that was put up by Elon Musk a few days after his explosive tweet, the Saudi fund showed their interest because of the important need to diversify away from oil.

Reports suggest that the Saudi Fund is likely to invest close to $1 billion and obtain majority ownership. The initial payments are expected to be to the tune of $500 million after which subsequent cash injections would come in two stages that will be dependent on certain production milestones.

However, the discussions are in its most early stages and has a possibility to fall out.

The Saudi Arabian Sovereign Wealth Fund which approached Tesla nearly two years ago had put the thought of taking Tesla private on the table.

After his tweet about taking Tesla private at the rate of $420 per share, Musk in a statement stated that he did not have any plans until the most recent meeting in July where the Saudi fund assured assistance and support for the company’s transition.

On August 7, Elon Musk tweeted his future plans for taking Tesla private. The company’s board who held a review meeting following Musk’s tweeet approved the decision and stated that further evaluation would be conducted on the matter.

Days later, Musk updated on the issue stating that the company was approached by the Saudi fund nearly two years ago with a proposal to take the company private. Musk clarified that initially, he did not plan to make such a move. However, in the most recent meeting, the Saudi fund assured Tesla to provide with assistance and financial support for the company’s transition.