Tesla is set to launch in Saudi Arabia this April, showcasing vehicles like the Cybertruck as part of a new chapter in its Middle East expansion.
Credit : Shutterstock, Jonathan Weiss
Tesla is finally making its debut in Saudi Arabia, with the electric vehicle giant set to launch sales in the kingdom on April 10.
The move signals a major turnaround in Elon Musk’s relationship with Saudi leadership, following a years-long rift sparked by Musk’s failed bid in 2018 to take Tesla private.
The company confirmed the news via its website, revealing plans for a high-profile launch event in Riyadh. The showcase will feature Tesla’s lineup of EVs, solar-powered products and even a glimpse of futuristic tech like the Cybercab and its humanoid robot, Optimus. Pop-up stores will open the following day in Jeddah, Riyadh and Dammam, with long-term investments planned beyond 2025.
Tesla’s Saudi arrival: market opportunity or strategic move?
Though Tesla has a strong presence in the UAE and elsewhere in the region, it’s been notably absent from Saudi Arabia—the Gulf’s largest auto market, where EVs currently make up just 1 per cent of car sales. The lack of charging infrastructure and the country’s preference for large petrol vehicles has slowed uptake.
Still, competition is already on the ground. China’s BYD and Lucid Motors—part-owned by Saudi’s Public Investment Fund (PIF)—are already selling EVs locally. PIF has also invested in a yet-to-launch domestic EV brand called Ceer.
The rocky history between Musk and the kingdom stems from a controversial tweet in 2018, where Musk claimed he had “funding secured” to take Tesla private—after discussions with PIF. That tweet led to investor lawsuits and public friction between Musk and PIF governor Yasir al-Rumayyan, with leaked texts showing their strained communication.
But signs of a thaw have emerged. Musk recently appeared alongside Rumayyan and former US President Donald Trump at a UFC fight in New York. Weeks earlier, he made a surprise appearance at Riyadh’s Future Investment Initiative summit.
Tesla’s Saudi launch comes amid global challenges
Tesla’s push into the Saudi market comes at a time when the company is under pressure. EV sales in Europe have dropped by over 42%, and the brand has faced backlash in the US for Musk’s political affiliations and his leadership of the Department of Government Efficiency, which has enacted sweeping public sector cuts.
Back home, Tesla has been targeted by protesters and has seen ‘Tesla Takedown’ demonstrations over job losses, foreign aid freezes and scrapped programmes. Despite this, the company continues to expand globally, and the Saudi launch represents both a new revenue stream and a political reset.
With a billion-dollar EV market slowly taking shape and renewed political ties, Tesla’s Saudi venture could be a defining chapter in Musk’s Middle East ambitions.
