Tesla Expands to Saudi Arabia with First Showroom in Riyadh

Tesla has officially launched in Saudi Arabia, marking a significant step in the company’s global expansion, Fortune reports.

The opening of its first showroom and service center in Riyadh on Thursday highlights Tesla’s entry into a market that is increasingly embracing electric vehicles (EVs), despite challenges related to extreme heat and limited charging infrastructure.

Tesla’s Riyadh showroom will showcase popular models such as the Model 3, Model Y, and the Cybertruck. In addition to the showroom, pop-up stores are set to open in Jeddah and Dammam, signaling a broader push into the kingdom’s automotive sector.

Local enthusiasm was evident at the launch event, which attracted a diverse crowd of car enthusiasts, business leaders, and social media influencers.

“It’s a beautiful step we’ve been waiting for—finally seeing Tesla in Saudi Arabia,” said Bader Khalid, a businessman who sees the move as part of the country’s shift toward EVs.

Tesla’s expansion aligns with Saudi Arabia’s Vision 2030, an initiative aimed at reducing reliance on oil and promoting sustainable energy solutions. The government has set a target for 30% of all vehicles in Riyadh to be electric by 2030 and is investing in charging infrastructure to support this transition.

Elon Musk’s relationship with the kingdom has not always been smooth. In 2018, he claimed that Saudi Arabia’s sovereign wealth fund was backing his plan to take Tesla private—a deal that ultimately did not materialize, leading to lingering tensions. However, Tesla’s recent launch in Riyadh suggests that both sides are moving forward.

Musk, who has a strong following in Saudi Arabia, was notably absent from the event, disappointing some attendees who had hoped for an appearance, even virtually.

“He’s always looking ahead,” said Mohammed Osama, a young Tesla enthusiast. “Maybe a few things don’t make sense right now, but in the future, it’ll all come together—he’s building something bigger.”

While Tesla’s entry into Saudi Arabia is a milestone, challenges remain. The country currently has a limited number of public charging stations, though the government has announced plans to expand its EV infrastructure. Additionally, the kingdom’s extreme heat could impact battery performance, raising questions about how well Tesla’s vehicles will adapt to the climate.

Tesla also faces competition from Lucid Motors, a California-based EV manufacturer with strong ties to Saudi Arabia. The kingdom’s Public Investment Fund (PIF) holds a majority stake in Lucid, and in 2022, the company announced plans to build its first international manufacturing plant in Jeddah.