Tesla launches in Saudi Arabia with its first showroom and service
center in Riyadh
[April 11, 2025] By
BARAA ANWER
RIYADH, Saudi Arabia (AP) — Tesla officially launched in Saudi Arabia on
Thursday, marking a new chapter in the company’s global expansion after
Elon Musk ’s troubled relationship with the kingdom — but the Middle
East country’s extreme heat could pose a challenge for its electric
vehicle performance and battery efficiency.
Musk and Saudi Arabia have had a complicated history. Back in 2018, the
Tesla CEO claimed he had secured funding from the kingdom’s sovereign
wealth fund to take the company private. That deal never happened,
leading to lingering tensions.
With the launch of its first showroom and service center in the Saudi
capital, Riyadh, Tesla makes its long-anticipated entry into the Saudi
market. The facility will offer models, including Model 3, Model Y and
the Cybertruck, and pop-up stores are also opening in Riyadh, Jeddah,
and Dammam.
The Riyadh event drew a large and diverse crowd — from content creators
and car enthusiasts to visitors excited about Tesla's launch.
“It’s a beautiful step we’ve been waiting for — to finally see Tesla
open in Saudi Arabia,” said Bader Khalid, a local businessman. “The
country is clearly moving toward electric vehicles.”
"Tesla is one of the most important EV companies in the world, so it’s a
big deal to have them present in our market,” he added.
However, the kingdom still faces significant challenges in
infrastructure, with a limited number of public EV charging stations
available. The government has announced plans to expand charging
networks as part of its sustainability goals.
Musk has a large fan base in the kingdom, praised by many for his
creativity and innovation, and seen as a visionary of the future.
“He’s always looking ahead," said Mohammed Osama, a teenager who
describes himself as enthusiastic about everything Tesla. "Maybe a few
things don’t make sense right now, but in the future, it’ll all come
together — he’s building something bigger.”
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People attend a celebration for the start of Tesla operations in
Saudi Arabia in historic Diriyah near Riyadh, Saudi Arabia, on
Thursday, April 10, 2025 (AP Photo/Baraa Anwer)
Many attendees expected Musk to make
an appearance, at least via video, but he didn’t show.
Though Tesla has faced criticism and even vandalism in parts of the
United States and elsewhere, after Musk took a prominent role in
President Donald Trump’s administration. People have protested
Musk’s Department of Government Efficiency, or DOGE, which has been
moving to slash the size of the federal government through
large-scale layoffs, contract cancellations and other moves.
Still, many in Saudi Arabia believe that won't impact Tesla's
performance in the kingdom.
“Political events outside of Saudi Arabia don’t concern us," said
Khalid. "So I don’t think this thing has any effect.”
Lucid Motors, another luxury electric vehicle manufacturer,
headquartered in California, has had a deepening relationship with
Saudi Arabia.
The kingdom’s Public Investment Fund is one of Lucid’s largest
backers, owning a majority stake in the company. In 2022, Lucid
announced plans to build its first international manufacturing plant
in the city of Jeddah, a major step in the kingdom's push to become
a hub for advanced automotive technology.
The growing interest in electric vehicles aligns with Saudi Arabia’s
Vision 2030 — an ambitious plan to diversify the economy and reduce
its dependence on oil. EVs are a key part of the strategy, with the
government aiming for 30% of all vehicles in Riyadh to be electric
by 2030.
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