Apparently, it’s not just Tesla (TSLA) that Saudi Arabian sovereign wealth fund PIF is in talks with. Citing people familiar with the matter, Reuters reported that PIF is in talks with potential Tesla competitor Lucid Motors Inc for over $1 billion in funding. PIF is the same Saudi firm that Elon Musk hoped would help him in taking his company private.

Meanwhile, the sources stated that confirmation had not been made regarding the investment.

According to the term sheet, the first tranche of $500 million would initially be handed over to the Newark, California –based company and the rest would come up after the electric car maker meets some production deadlines. It may be noted that Lucid Motors has not started selling its vehicles though it has begun taking $2,500 as refundable deposits from interested parties.

Lucid Air (Image courtesy: Lucid Motors)

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The company had released $100,000 luxury sedan prototype two years ago called Lucid Air, the production of which it expects to begin by the end of this year.

PIF, which has about $250 billion in assets, has made numerous investments in technology companies, including a $45 billion funding in a tech fund backed by SoftBank Group, according to Reuters.

Musk, who is facing the wrath of short-sellers and analysts for Tesla’s rampant cash burn, had stunned market pundits last week when he announced through a tweet his intention to take the company private. He later explained that he had held talks with PIF and was expecting the Saudi firm to provide the necessary funding.

However, with the latest development, the prospects of a massive investment in Tesla have just narrowed.