Tesla has officially arrived in Saudi Arabia. The launch marks a big moment—not just for the electric car giant, but for a kingdom still figuring out how to plug into the EV revolution. It’s been a long road, bumpy at times, with a past dispute between Elon Musk and Saudi Arabia’s sovereign wealth fund looming large. But here we are.
While the Gulf state is hardly known for being an EV hotspot, its ambitions are revving up fast. Tesla’s arrival could turn up the pressure—and maybe, just maybe, light a spark in the desert.
A Market with Plenty of Gas But Not Much Charge
Saudi Arabia loves its gas-powered rides. That’s no surprise in a country where oil built the skyline. But things are starting to shift.
Only around 2,000 electric vehicles were sold across the country in 2023. That’s not a typo. To put it in perspective, Tesla was selling more than double that—per day—across the globe last year.
The biggest hurdle? Charging stations. As of early 2024, the entire country had just 101 public EV chargers, and most of those are tucked inside the big cities.
Just one sentence here: Long road trips? Forget about it for now.
For example, try driving the 559-mile stretch from Riyadh to Mecca in a Tesla—you’ll be praying for more than just safe travels. There’s not a single charger along that route.
From Tension to Transition: The Musk-PIF Fallout
This isn’t Tesla’s first tango with Saudi Arabia.
Back in 2018, Musk tweeted that he had “funding secured” from the Saudi Public Investment Fund (PIF) to take Tesla private. That blew up fast.
Saudi officials said they were interested, sure, but never promised the billions Musk suggested. Musk, on the other hand, accused them of backing out. What followed was an investor lawsuit, media frenzy, and strained relations with the Kingdom’s power players.
Since then, things cooled down—until recently.
Musk’s growing influence in Donald Trump’s new administration has opened new doors. With Trump planning a visit to Riyadh soon, sources say the mood between Musk and the Saudis has warmed up a lot.
Why Now? Why Saudi?
Well, Saudi Arabia has plans—big ones. The country’s trying to build its own EV ecosystem from scratch. That includes a massive $39 billion investment plan focused on electric mobility, infrastructure, and local manufacturing.
Here’s a snapshot of what’s on the table:
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$39 billion earmarked for EV development, manufacturing, and tech
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Lucid Motors, which is partly owned by the PIF, has already broken ground on an EV plant in King Abdullah Economic City
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National targets aim for 30% of cars in Riyadh to be electric by 2030
For Tesla, this is a risky bet with high upside. If Saudi Arabia gets serious about EVs, it’ll need more than just factories—it’ll need brand power, global expertise, and a charging network that works. That’s Musk’s turf.
One-liner break: It’s not just about selling cars—it’s about planting a flag early.
How Tesla’s Entry Could Change the Game
Tesla’s presence might actually accelerate Saudi Arabia’s EV shift more than any government target or glossy economic plan.
For starters, people trust the brand. And if there’s one thing Tesla’s good at—besides drama—it’s making electric cars cool. That kind of influence could nudge other automakers to follow.
Here’s how Tesla could shake things up:
| Impact Area | What Changes |
|---|---|
| Consumer Interest | A surge in awareness and EV demand |
| Charging Infra | Push for more stations to support high-end models |
| Market Competition | Local players like Lucid get real competition |
| Policy Shifts | Possible EV incentives, faster deregulation |
Tesla’s move also shines a light on gaps. Infrastructure’s still missing. Long-haul driving’s a joke. And resale value for EVs in the region is, well, not great.
But if anyone can create noise and force a system to change, it’s Elon Musk.
Musk, Trump, and the Timing That’s No Coincidence
The timing here isn’t random.
Musk’s re-engagement with Saudi Arabia is happening just as Donald Trump—now back in the White House—is prepping for a visit to Riyadh. It would be his first overseas trip in his second term.
Prince Mohammed bin Salman and Trump go way back, and Musk has now positioned himself as a close ally of both. There are even whispers of a bigger EV partnership deal in the works, but nothing confirmed just yet.
Also on the table? Regional issues like Gaza, Yemen, and even Syria. So yeah, EVs might not be the only thing driving this sudden warmth between Musk and the Saudis.
Still, amid all the geopolitics, Tesla’s quiet rollout in the Kingdom speaks volumes.
