Tesla Enters Saudi Market with Launch Event in Riyadh on April 10

Saudi Arabia : Tesla makes its long-awaited KSA debut with a major Riyadh event showcasing EVs, AI tech, and investment plans amid tough market challenges and renewed ties with the kingdom.

• The event includes EV test drives and AI robot demos.  
• Musk and PIF end feud; investment talks now underway.

Tesla is officially entering the Saudi Arabian market, with a grand launch event scheduled for April 10 in Riyadh. The move comes after years of tension between CEO Elon Musk and the kingdom’s Public Investment Fund (PIF), marking a new chapter for the American EV giant in the Gulf’s largest automotive market. With test drives, AI demonstrations, and retail expansion planned, Tesla’s arrival could reshape KSA’s slow-moving electric vehicle space.

Launch Plans and What to Expect

The Riyadh event is set to be more than just a vehicle showcase. Alongside test drives of Tesla’s popular EVs—including the much-anticipated Cybertruck—attendees will also witness demonstrations of the company’s AI-driven Optimus humanoid robot.

In addition, Tesla is launching pop-up retail stores in three key cities: Riyadh, Jeddah, and Dammam, beginning April 11. These stores will give customers hands-on experiences and mark Tesla’s first official sales presence in the kingdom.

Challenges Tesla Faces in KSA

While Tesla’s UAE success hints at potential, Saudi Arabia presents unique hurdles. The EV market remains in its infancy, with PwC reporting electric vehicles make up just 1% of total car sales in the kingdom.

Gasoline remains cheap and widely available, and the current charging infrastructure is sparse, especially across long desert highways. On top of that, most Saudis prefer large gas-powered SUVs and trucks—segments that don’t yet fully align with Tesla’s typical offerings.

Market Competition and Investment Landscape

• Lucid Motors: Already active in KSA; backed by the PIF.
• BYD: Chinese EV maker also selling in the kingdom.
• Ceer: A Saudi EV brand launched by PIF, expected soon.
• Tesla: Independent, launching April 2024.

While Tesla hasn’t revealed detailed pricing, the brand will likely need to compete with rivals like Lucid Air, which starts around 300,000 SAR. Tesla also hinted at future investments in the kingdom, potentially backed by the PIF’s $925 billion in assets.

How the Musk-PIF Dispute Ended

The roots of Musk’s earlier feud with Saudi Arabia go back to 2018, when he tweeted about taking Tesla private with funding from the PIF. The deal fell apart, leading to lawsuits and growing tensions.

However, by late 2023, the rift began to heal. Musk and PIF Governor Yasir al-Rumayyan were seen together at a UFC event alongside Donald Trump. A U.S. jury also cleared Musk of investor fraud, removing a major legal barrier.

Tesla’s Global Headwinds

While launching in KSA, Tesla is facing struggles elsewhere. In Europe, the company saw a 42.6% drop in sales in early 2024, with some backlash linked to Musk’s far-right political ties. In the U.S., Tesla faces criticism over policy views and workplace issues.

Despite global challenges, Tesla’s move into Saudi Arabia is a strategic push into an untapped market. If the brand can overcome local barriers, it may become a major EV player in the region.