Tesla's Saudi Market Entry: A Sign of Easing Tensions

Tesla is set to begin sales in Saudi Arabia, marking a reconciliation between Elon Musk and the kingdom. The launch event on April 10 in Riyadh will showcase EVs and AI innovations. Previously, Musk and Saudi ties were strained due to a failed 2018 bid to take Tesla private.

Tesla is launching sales in Saudi Arabia next month, according to the electric carmaker's website, signaling the resolution of a long-standing rift between CEO Elon Musk and the kingdom. The tension originated in 2018, following Musk's ill-fated attempt to take Tesla private, citing funding from Saudi Arabia. However, the launch indicates improving relations as tensions have eased.

The event, set for April 10 in Riyadh, will feature a display of Tesla's electric vehicles and products powered by solar energy. Attendees can also experience autonomous driving and robotics as Tesla promotes its future technology. On April 11, pop-up stores will open in Riyadh, Jeddah, and Dammam, with further investment plans expected in 2025.

Despite low electric vehicle sales in Saudi Arabia, competition is growing with China's BYD and Lucid, backed by the Public Investment Fund, already present in the market. The PIF, with assets of $925 billion, is investing in the upcoming domestic EV brand, Ceer. The launch coincides with Tesla's sales slump in Europe and controversies in the U.S. over Musk's political affiliations and government cuts.

(With inputs from agencies.)