Tesla to Begin Sales in Saudi Arabia Next Month as Musk Rebuilds Ties

Tesla will begin sales in Saudi Arabia next month, the electric carmaker announced on its website, indicating that CEO Elon Musk and the Kingdom have reconciled following the billionaire's brief bid to take the company private in 2018.

Tesla sells in other Middle Eastern countries but not in Saudi Arabia, the Gulf region's largest market.

The dispute began in 2018, when Musk tweeted that he had "funding secured" to take Tesla private after meeting with Saudi Arabia's sovereign wealth fund, the Public Investment Fund.

When a bid failed, that tweet sparked a lawsuit from investors, and tense text messages between Musk and PIF CEO Yasir al-Rumayyan became public.

Tensions have eased since the autumn, when Musk played a prominent role in US President Donald Trump's election campaign and subsequent administration.

Trump said this month that he would make his first trip abroad to Saudi Arabia, after asking the Kingdom in January to invest up to $1 trillion in the US economy over four years, including military purchases.

Tesla's launch event in Riyadh, scheduled for April 10, will feature EVs and solar-powered products, according to the post.

"Experience the future of autonomous driving with Cybercab, and meet Optimus, our humanoid robot, as we showcase what's next in AI and robotics," said the note.

Tesla will open pop-up stores in Riyadh, Jeddah, and Dammam on April 11, according to a later statement. The company plans to invest in Saudi Arabia through 2025.

Guests who received invitations to the launch event were asked to indicate which Tesla car model they were interested in.

The launch comes as Tesla's EV sales in Europe have slumped, attributed to Musk's support for far-right politicians, and the brand has been targeted by protesters in the United States for spearheading sweeping cuts to the federal government.

EV sales in Saudi Arabia have been slow, with consultants PwC estimating that they will account for only 1% of total car sales in 2024.

EVs from Chinese giant BYD and PIF-backed Lucid are already available in Saudi Arabia.

A month after Musk's feud became public, the PIF announced a $1 billion-plus investment in Lucid, making it the majority shareholder in one of the EV startups vying with Tesla.

The $925 billion PIF also invested in Ceer, a domestic EV brand that has yet to launch.

However, large gas-guzzling vehicles remain the norm on Saudi roads, where fuel is cheap and EV charging infrastructure is scarce, making it nearly impossible to travel the country's long desert roads in an EV.