Tesla to launch in Saudi Arabia as Musk and the Kingdom mend relations
- SAUDI ARABIA BREAKING NEWS
- Mar 27
- 2 min read
RIYADH, March 27, 2025 (Saudi Arabia Breaking News) – Tesla will start sales in Saudi Arabia next month, the electric carmaker said on its website, signaling CEO Elon Musk and the kingdom 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 in Saudi Arabia, the Gulf region’s largest market, where EVs only account for 1% of total car sales. The brand has considerable success in neighboring United Arab Emirates, where most ride – hailing apps offer electric vehicles.
The dispute started when Musk tweeted in 2018 he had “funding secured” to take private after a meeting with Saudi Arabia’s sovereign wealth fund, the Public Investment Fund.
That tweet eventually led to a lawsuit from investors when a bid failed to materialize, during which tense text messages between Musk and PIF head Yasir al – Rumayyan were made public.
Tensions have eased since the autumn, when Musk took a high – profile role in U.S. President Donald Trump’s election campaign and then new administration.
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 U.S. 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.
LAUNCH SCHEDULED FOR APRIL 10
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.
A month after the feud with Musk went public, the PIF announced a $1-billion-plus investment in Lucid, becoming the majority investor in one of the EV startups looking to challenge Tesla.
PIF, which has assets under management of $925 billion, has also invested in a domestic EV brand that is yet to launch called Ceer.
Yet large gas-guzzling vehicles remain the norm on Saudi roads where fuel is cheap and EV charging infrastructure remains a rarity, making traversing its long desert roads almost impossible in an EV.
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.
