Tesla officially launched in Saudi Arabia on Thursday, marking a significant milestone in the company’s global expansion despite a rocky past between Elon Musk and the kingdom. The extreme heat of the region could pose a challenge to the performance and battery efficiency of electric vehicles (EVs) in the country.
Musk’s relationship with Saudi Arabia has been complex. In 2018, he claimed to have secured funding from the kingdom’s sovereign wealth fund to take Tesla private, but the deal never materialized, leading to ongoing tensions.
With the opening of its first showroom and service center in Riyadh, Tesla is officially entering the Saudi market. The new facility will showcase various models, including the Model 3, Model Y, and Cybertruck, with additional pop-up stores planned for Riyadh, Jeddah, and Dammam.
The launch event in Riyadh attracted a diverse crowd, ranging from car enthusiasts to content creators, all excited about Tesla’s arrival in the region. Local businessman Bader Khalid expressed his excitement, saying, “It’s a beautiful step we’ve been waiting for — to finally see Tesla open in Saudi Arabia.” He added that the country is clearly moving toward electric vehicles.
Despite the excitement, Saudi Arabia faces infrastructure challenges, particularly with a limited number of public EV charging stations. The government has announced plans to expand charging networks as part of its sustainability efforts.
Musk has a strong following in Saudi Arabia, admired for his innovation and vision for the future. Mohammed Osama, a teenager passionate about Tesla, shared his belief that Musk is building something bigger, even if it doesn’t all make sense right now.
Although many expected Musk to appear at the event, either in person or via video, he was absent. Despite criticism and protests surrounding Musk’s involvement in U.S. politics, many in Saudi Arabia are not concerned by those issues. Khalid stated, “Political events outside of Saudi Arabia don’t concern us, so I don’t think this thing has any effect.”
Lucid Motors, another luxury EV manufacturer, has also strengthened its ties with Saudi Arabia. The kingdom’s Public Investment Fund is one of Lucid’s largest investors and owns a majority stake in the company. Lucid has announced plans to build its first international manufacturing plant in Jeddah, which supports the kingdom’s efforts to become a hub for advanced automotive technology.
The rise in interest around electric vehicles aligns with Saudi Arabia’s Vision 2030, a plan to diversify its economy and reduce its reliance on oil. As part of this strategy, the government aims to make 30% of all vehicles in Riyadh electric by 2030.
