Tesla is set to begin selling its electric vehicles in Saudi Arabia next month, marking a major step in its Middle Eastern expansion.
The company announced the move on its website, highlighting a launch event in Riyadh on April 10 that will showcase its electric cars and solar-powered products. Attendees will also experience Tesla’s autonomous driving technology with Cybercab and get a closer look at Optimus, its humanoid robot, though no timeline has been provided for when these products will be available in the kingdom.
Invitations to the event allow guests to indicate which Tesla models they are interested in purchasing.
Saudi Arabia’s EV market remains in its infancy, with electric vehicles making up just 1% of total car sales in 2024, according to consulting firm PwC. Despite this, the kingdom has been making significant investments in the sector.
The Public Investment Fund has committed over $1 billion to Lucid Motors, a Tesla competitor, and is also backing Ceer, a domestic EV brand. However, widespread adoption faces hurdles, including the country’s vast road networks, limited EV charging infrastructure, and continued preference for large gasoline-powered vehicles due to low fuel costs.
Tesla’s entry into Saudi Arabia signals a resolution to past tensions between CEO Elon Musk and the kingdom. The dispute originated in 2018 when Musk claimed on social media that he had “funding secured” to take Tesla private, citing talks with the Public Investment Fund.
When the deal failed to materialize, investors sued, leading to a legal battle that revealed a series of tense exchanges between Musk and PIF Governor Yasir al-Rumayyan. In 2023, a U.S. jury ruled that Musk was not liable for misleading investors, with Musk maintaining that the PIF had, in fact, pushed for Tesla to go private.
Relations between Musk and Saudi leaders have been warming in recent months. Musk made a surprise virtual appearance at Riyadh’s Future Investment Initiative summit and was later seen sitting alongside Rumayyan and U.S. President Donald Trump at a high-profile UFC fight in New York. Trump, who has been working to strengthen ties with Saudi Arabia, recently announced that his first overseas trip in office would likely be to the kingdom, following discussions about Saudi investments exceeding $1 trillion in the U.S. economy.
Tesla’s move into Saudi Arabia comes at a time when the company is facing challenges in other global markets. Sales in Europe have fallen by 42.6% this year despite rising overall demand for EVs. In the United States, Tesla has become a target of activist protests, with demonstrations against Musk’s leadership of the Department of Government Efficiency, a new federal agency overseeing major budget cuts, foreign aid freezes, and contract cancellations.
While Tesla has already been selling its vehicles in other Middle Eastern markets, Saudi Arabia represents the largest economy in the Gulf region and a key opportunity for growth. The launch positions Tesla to compete in a market that is slowly shifting toward electric mobility while also strengthening ties with one of the world’s most influential sovereign investors.
