Tesla will start sales in Saudi Arabia next month, the electric carmaker said on its website, signalling CEO Elon Musk and the kingdom have healed a rift that dates back to the billionaire’s short-lived bid in 2018 to take the company private.
Tesla sells in other Middle Eastern countries, but not in Saudi Arabia, the Gulf region’s largest market, where EVs only account for 1% of total car sales.
The brand has had considerable success in neighbouring United Arab Emirates, where most ride-hailing apps offer electric vehicles.
Trump said this month he would likely make his first trip abroad to Saudi Arabia, after asking the kingdom in January to spend upwards of $1 trillion in the US economy, over four years, including military purchases.
EVs from China’s BYD and PIF-backed Lucid are already available in the Saudi market.
EV sales have been slow in Saudi Arabia, with a 2024 report from consultants PwC putting them at just 1% of all car sales.
Tesla’s launch event in Riyadh, scheduled for April 10, will display its EVs and products powered by solar energy, the post said.
“Experience the future of autonomous driving with Cybercab, and meet Optimus, our humanoid robot, as we showcase what’s next in AI and robotics,” it added.
On April 11, it will open pop-up stores in Riyadh, Jeddah, and Dammam, Tesla said in a later statement, adding it would announce further details of its plans for Saudi Arabia in the coming weeks, with investment planned for 2025 and beyond.
Invitations to the launch event asked guests to indicate which Tesla car model they were interested in.
The launch comes as Tesla has seen EV sales slump in Europe, blamed on Musk’s support for far right politicians, and the brand has been targeted by protesters in the United States over his spearheading of sweeping cuts to the federal government.
Reuters
In one of the first signs of improving relations, Musk appeared alongside Public Investment Fund head Yasir al-Rumayyan and Trump in ringside seats at a UFC mixed martial arts match in New York in November.
A few weeks earlier, Musk had made a surprise appearance at Riyadh’s Future Investment Initiative summit via video link.
A US jury found in 2023 that Musk was not liable for misleading investors when he tweeted funding was secured to take Tesla private.
Tesla’s sales in Europe are down 42.6% so far this year, data showed on Tuesday, even as demand for EVs rises.
Activists across the US have staged so-called “Tesla Takedown” demonstrations over Musk’s role leading the Department of Government Efficiency, which has cut thousands of jobs, frozen foreign aid and cancelled thousands of programmes and contracts.
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