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.”
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.
This story was originally featured on Fortune.com
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