Tesla to showcase electric vehicles, solar-powered products in Saudi Arabia

Tesla has been trading in other Middle Eastern countries, but not in Saudi Arabia, the Gulf's largest market.

The dispute began in 2018 when Elon Musk tweeted that he had "funding secured" to take Tesla private after meeting with the Saudi Public Investment Fund (PIF). The tweet led to a lawsuit from investors when the buyout bid never materialized, and tense text messages between Musk and PIF head Yasir al-Rumayyan were later made public.

Tensions began to ease last autumn when Musk took a high-profile role in U.S. President Donald Trump’s election campaign and subsequent administration. This month, Trump announced that he would likely make Saudi Arabia his first foreign trip, after requesting the kingdom in January to invest upwards of $1 trillion in the U.S. economy over four years, including military purchases.

Tesla’s launch event in Riyadh is scheduled for April 10, where the company will showcase its electric vehicles (EVs) and solar-powered products. The event will also feature a demonstration of Cybercab, an autonomous vehicle, and Optimus, Tesla's humanoid robot, highlighting the future of AI and robotics.

On April 11, Tesla plans to open pop-up stores in Riyadh, Jeddah, and Dammam. The company also stated that more details regarding its plans for Saudi Arabia will be announced in the coming weeks, with investments planned for 2025 and beyond. Invitations to the launch event included a request for guests to indicate which Tesla car model they were most interested in.

The launch comes amid a slowdown in Tesla’s EV sales in Europe, which some attribute to Musk’s political support for far-right figures. The brand has also faced protests in the U.S. over his leadership of sweeping cuts to the federal government.

In Saudi Arabia, EV sales remain sluggish, accounting for just 1% of all car sales in 2024, according to PwC. EVs from Chinese automaker BYD and PIF-backed Lucid are already available in the Saudi market. A month after the public fallout with Musk, the PIF announced a $1 billion investment in Lucid, becoming the majority investor in the EV startup that competes with Tesla. The PIF has also invested in a domestic EV brand, Ceer, which has yet to launch.

However, Saudi Arabia’s roads are still dominated by large, fuel-guzzling vehicles, with cheap fuel and limited EV charging infrastructure making long desert trips difficult for electric cars.

Warming ties between Musk and the PIF have been evident in recent months. In November, Musk was seen sitting alongside Rumayyan and Trump at a UFC event in New York. Musk also made a surprise video appearance at Riyadh’s Future Investment Initiative summit a few weeks earlier.

A U.S. jury cleared Musk of any wrongdoing in 2023 regarding his "funding secured" tweet. During the trial, Musk testified that it was the PIF that had initially wanted to take Tesla private. Tense text exchanges between him and Rumayyan were revealed, with Musk accusing the PIF head of undermining him.

Tesla’s sales in Europe have dropped by 42.6% so far this year, despite rising demand for EVs. Meanwhile, activists in the U.S. have staged “Tesla Takedown” protests, criticizing Musk's leadership of the Department of Government Efficiency, which has implemented major job cuts, frozen foreign aid, and canceled various government programs and contracts.