Tesla Electrifies Saudi Arabia: Musk's Renewed Ties and EV Ambitions

Tesla officially began operations in Saudi Arabia, highlighting Elon Musk's mending of ties with the kingdom and Saudi Arabia's push for electric vehicles. Despite past tensions, Musk's involvement in Trump's administration may have aided the relationship. Tesla's launch aimed to attract more customers amid stiff competition.

Tesla has marked a significant milestone by launching operations in Saudi Arabia, a move that underscored a renewed relationship between Elon Musk and the oil-rich kingdom. Thursday's event featured Tesla's Cybertruck and the redesigned Model Y, captivating onlookers gathered around a plaza decorated with palm trees.

The launch comes as Tesla global sales saw a 13% dip in the first quarter, with challenges arising from Musk's controversial ties to the Trump administration, competition, and an aging lineup. As part of Saudi Arabia's ambitious vision, the goal is to escalate electric vehicle adoption to 30% within five years.

The history between Musk and the kingdom's sovereign wealth fund has been turbulent, marked by a high-profile feud. However, relations have appeared to improve, as highlighted by sightings of Musk alongside President Trump and fund chief Yasir Al-Rumayyan at prominent events.

(With inputs from agencies.)