Tesla Expands to Saudi Arabia: A New Chapter in the Middle East

Tesla’s Entry into Saudi Arabia

Tesla is set to launch operations in Saudi Arabia, marking its debut in the region’s largest market. This move follows years of tension between CEO Elon Musk and the Saudi Public Investment Fund (PIF) over a failed 2018 bid to take Tesla private.

Launch Event and Pop-Up Stores

The company will host a launch event on April 10 in Riyadh, where it will showcase its electric vehicles, solar energy products, and cutting-edge AI and robotics, including the Cybercab and humanoid robot, Optimus.

On April 11, Tesla will open pop-up stores in Riyadh, Jeddah, and Dammam, giving potential customers an opportunity to explore its offerings.

Future Investment Plans

Tesla has announced plans for further investments in Saudi Arabia beyond 2025. Additional details about its long-term strategy in the kingdom are expected in the coming weeks.

Challenges and Market Conditions

Saudi Arabia’s EV market remains small, with electric vehicles accounting for just 1% of total car sales. The dominance of fuel-powered vehicles, limited charging infrastructure, and vast desert landscapes present challenges for EV adoption.

Competition in the Saudi EV Market

Tesla will face competition from established players in the Saudi market, including:

BYD, a major Chinese EV manufacturer
Lucid Motors, which is backed by the Saudi PIF
Ceer, an emerging Saudi EV brand

Global Context and Market Trends

Tesla’s entry into Saudi Arabia comes at a time when its European sales have declined by over 40% in early 2025, despite growing demand for EVs. The company has also faced protests in the U.S. over Elon Musk’s leadership in government efficiency initiatives that have led to job cuts and budget reductions.

Strengthening Business Relations

Signs of improving relations between Tesla and Saudi Arabia have emerged in recent months. Elon Musk has made appearances at Saudi events, including a major investment summit and a high-profile sports event alongside key Saudi and U.S. figures.

With its expansion into Saudi Arabia, Tesla is positioning itself for long-term growth in a market that is gradually shifting toward renewable energy and electrification.

“Tesla Expands to Saudi Arabia: A New Chapter in the Middle East” “Tesla Expands to Saudi Arabia: A New Chapter in the Middle East” “Tesla Expands to Saudi Arabia: A New Chapter in the Middle East”