Tesla Debuts in Saudi Arabia with First Showroom and Service Center in Riyadh

Tesla has officially launched in Saudi Arabia, marking a new chapter in the company's global expansion following Elon Musk's strained relationship with the kingdom, but the Middle Eastern country's extreme heat may pose a challenge to its electric vehicle performance and battery efficiency.

The relationship between Saudi Arabia and Musk has been complex. The CEO of Tesla stated in 2018 that he had secured funds to take the company private from the kingdom's sovereign wealth fund. Tensions have persisted since that agreement was never finalized.

Tesla made its much-awaited debut in the Saudi market on Thursday when it opened its first showroom and service center in the Saudi capital, Riyadh. The facility will sell models like the Model 3, Model Y, and Cybertruck, and pop-up stores will open in Riyadh, Jeddah, and Dammam.

The event in Riyadh drew a large and diverse crowd that included content creators, car enthusiasts, and travelers who were looking forward to Tesla's launch.

According to local entrepreneur Bader Khalid, the opening of Tesla in Saudi Arabia is a wonderful development that we have all been anticipating. It is obvious that the nation is moving toward electric cars.

Musk has a sizable following in the kingdom, where he is revered as a futurist and commended for his inventiveness and creativity.

According to Mohammed Osama, a teenager who identifies as a Tesla enthusiast, "He's always looking ahead." "He is creating something greater, so even though some things might not make sense now, they will all make sense in the end."

Musk did not appear, despite the expectations of many attendees that he would, at least on camera.

Tesla has been the subject of criticism and even vandalism in some US and international locations since Musk gained notoriety during President Donald Trump's administration. In an effort to shrink the federal government through mass layoffs, contract cancellations, and other actions, Musk's Department of Government Efficiency, or DOGE, has drawn protests.

Many Saudis, however, think that this won't affect Tesla's performance in the kingdom.

We are not concerned by political developments outside of Saudi Arabia," Khalid said. Therefore, I don't think this has any impact.

Another California-based luxury EV manufacturer that has been fortifying its relationship with Saudi Arabia is Lucid Motors.

One of Lucid's biggest investors is the Public Investment Fund of the kingdom, which owns the majority of the business. An important step toward the kingdom's ambition to become a center for cutting-edge automotive technology was taken in 2022 when Lucid announced plans to construct its first overseas manufacturing facility in Jeddah.

The growing popularity of electric cars aligns with Saudi Arabia's Vision 2030, a bold strategy to diversify the country's economy and lessen its dependency on oil. The government wants 30% of all vehicles in Riyadh to be electric by 2030, making EVs a key part of the plan.