Tesla is scheduled to launch in Saudi Arabia this April and will showcase cybertruck-like vehicles as part of a new chapter in the Middle East expansion. Credits: Shutterstock, Jonathan Weiss
Tesla will finally make its debut in Saudi Arabia, with the electric car giant scheduled to start selling in the kingdom on April 10th.
The move marks a major shift in Elon Musk’s relationship with Saudi leaders following the long-standing rift caused by Musk’s failed bid to make Tesla Private in 2018.
The company has checked the news through its website and revealed plans for a well-known launch event in Riyadh. The showcase offers a glimpse into Tesla’s EVS lineup, solar power products, and futuristic technologies such as CyberCab and its humanoid robots and Optimus. The pop-up store will open the following day in Jeddah, Riyadh and Dhammam with long-term investments planned for more than 2025.
Tesla’s arrival in Saudi Arabia: market opportunities or strategic moves?
Tesla has a strong presence in the United Arab Emirates and elsewhere in the region, but in Saudi Arabia it is not the largest car market in the Gulf, with EVs currently making up just 1% of car sales. Lack of charging infrastructure and the country’s preference for large-scale gasoline vehicles have led to slower intakes.
Still, the competition is already on the ground. China’s BYD and Lucid Motors, owned by Saudi Arabia’s Public Investment Fund (PIF), are already selling EVs locally. PIF is also investing in an unannounced domestic EV brand called CEER.
The rocky history between Musk and the Kingdom comes from a controversial 2018 tweet. Musk claimed he “funded” to make Tesla private after discussion with PIF. The tweet led to investor lawsuits and public friction between Musk and PIF Gov. Yasir Al-Rumayyan, leaking text showing their tense communication.
However, signs of thawing appeared. Musk recently appeared in the UFC battle in New York along with LeMayyan and former US President Donald Trump. A few weeks ago, he made a surprising appearance at Riyadh’s future investment initiative summit.
Tesla’s Saudi Arabia launch is coming amidst the global challenges
Tesla’s push to the Saudi Arabian market comes when the company is under pressure. EV sales in Europe have fallen by more than 42%, and the brand faces backlash in the US due to Musk’s political affiliation and his leadership in the Ministry of Government Efficiency, which has enacted widespread reductions in the public sector.
Back at home, Tesla has been targeted by protesters and has seen a demonstration of “Tesla Takedown” on unemployment, freezing foreign aid and disposal programs. Nevertheless, the company continues to expand globally, with Saudi Arabia’s launch representing both a new revenue stream and a political reset.
As the billion-dollar EV market slowly sets its shape and renews political connections, Tesla’s Saudi venture could become a definitive chapter in Musk’s Middle East ambitions.
