Tesla announced on its website that it will commence sales in Saudi Arabia starting next month.

The declaration of Tesla entering the sales market in Saudi Arabia signifies the resolution of the tension between CEO Elon Musk and Saudi officials. This tension began in 2018 when Musk attempted to delist Tesla from the stock market. While Tesla was conducting sales in some Middle Eastern countries, it had not been selling in Saudi Arabia, which is the largest market in the region. Electric vehicles (EV) comprised only 1% of total car sales in the country. Conversely, the Tesla brand achieved significant success in neighboring United Arab Emirates, where most ride-sharing applications offer electric vehicles.

2018 TENSION
In 2018, Musk tweeted that there was “funding secured” to delist Tesla from the stock market after talks with Saudi Arabia’s Public Investment Fund (PIF). However, when this plan did not materialize, investors filed lawsuits against Musk. During this period, tension-filled messages between Musk and PIF President Yasir al-Rumayyan came to light. However, relations began to mend in the fall. Musk became a prominent figure in the new administration of President Donald Trump after actively participating in Trump’s election campaign. Trump announced this month that his first foreign visit during his presidency would be to Saudi Arabia.

In January, Musk also requested the Saudi government to invest $1 trillion in the U.S. economy within four years, particularly in military acquisitions. Manufacturers like Chinese BYD and Lucid, supported by PIF, are already selling electric vehicles in Saudi Arabia. However, according to a PwC report dated 2024, electric vehicle sales in the country only account for 1% of the total automobile market.

TESLA’S SAUDI ARABIA PLAN
Tesla will enter the Saudi Arabian market with a launch event in Riyadh on April 10, showcasing its electric vehicles and products powered by solar energy. The announcement also mentioned experiencing the future of autonomous driving with Cybercab and meeting our humanoid robot named Optimus to see what lies ahead in artificial intelligence and robotics. The company stated that it will open temporary stores in Riyadh, Jeddah, and Dammam on April 11 and will reveal its long-term investment plans in Saudi Arabia in the coming weeks. Tesla plans to invest in the country beyond 2025.