RIYADH, Saudi Arabia – Tesla has officially launched in Saudi Arabia, opening its first showroom and service center in Riyadh. This marks a significant step in the company's global expansion, despite the complex history between Elon Musk and the kingdom. The extreme heat in the region could present challenges for the electric vehicle's performance and battery efficiency.
Musk's relationship with Saudi Arabia has been under scrutiny, especially after a 2018 claim that he had secured funding from the kingdom's sovereign wealth fund to take Tesla private. The deal never materialized, leading to some tension.
The new Riyadh facility will showcase models like the Model 3, Model Y, and the Cybertruck. Pop-up stores will also appear in Riyadh, Jeddah, and Dammam, expanding Tesla's presence across the country.
The launch event in Riyadh attracted a diverse audience, including content creators, car enthusiasts, and curious visitors excited about Tesla's arrival.
"It's a positive development we've been anticipating – Tesla's entry into Saudi Arabia," noted Bader Khalid, a local businessman. "The country is evidently shifting towards electric vehicles."
He added, "Tesla is a leading EV company globally, making its presence in our market a significant event."
However, the kingdom's infrastructure still needs development, with limited public EV charging stations. The government has announced plans to expand charging networks to support its sustainability objectives.
Musk enjoys a substantial fan base in Saudi Arabia, where he is admired for his innovation and forward-thinking vision.
"He is always thinking ahead,” said Mohammed Osama, a Tesla enthusiast. “Some things may not seem logical now, but they will align in the future as he builds something greater."
Many attendees hoped for an appearance by Musk, potentially via video, but he was not present.
Tesla has encountered criticism and incidents of vandalism in the United States and other regions, particularly following Musk's involvement with former President Donald Trump's administration. Protests have targeted Musk's Department of Government Efficiency (DOGE) for its efforts to reduce the size of the federal government.
Despite these issues, many in Saudi Arabia believe that Tesla's performance in the kingdom will remain unaffected.
"Political events outside Saudi Arabia are not a concern for us," Khalid stated. "I don't anticipate any impact from these matters."
Lucid Motors, another electric vehicle manufacturer based in California, has been strengthening its ties with Saudi Arabia.
The kingdom's Public Investment Fund is a major investor in Lucid, holding a significant stake in the company. In 2022, Lucid announced plans to establish its first international manufacturing plant in Jeddah, supporting Saudi Arabia's ambition to become a hub for advanced automotive technology.
The growing interest in electric vehicles aligns with Saudi Arabia's Vision 2030, a comprehensive plan to diversify the economy and lessen its reliance on oil. EVs are a crucial element of this strategy, with the government aiming for 30% of all vehicles in Riyadh to be electric by 2030.