Tesla’s Entry into Saudi Arabia
Elon Musk’s Tesla has officially entered the Gulf’s largest economy, Saudi Arabia, at a pivotal moment for the electric vehicle manufacturer. On Wednesday, Tesla announced a launch event scheduled for April 10 in the capital city of Riyadh.
The announcement mentioned that a Tesla team would be available to address inquiries about Tesla ownership, home charging, and other related topics.
Musk’s history with Saudi Arabia has been complicated. In August 2018, he tweeted — now on X — that he was considering taking Tesla private, stating, “Am considering taking Tesla private at $420. Funding secured.” Musk disclosed in a company blog that he had previously met with officials from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), regarding a potential deal after expressing interest in privatizing Tesla.
This potential agreement did not materialize as the PIF did not provide the necessary funding. Subsequently, Musk and Tesla faced legal action from investors, claiming Musk’s announcement led to financial losses. During the trial, Musk attributed the setback to the PIF’s withdrawal from their plans.
Additionally, in 2018, the PIF invested $1 billion in Tesla’s competitor, Lucid Motors.
Tesla’s entrance into the Saudi market is crucial as the company grapples with a significant decline in its stock price, which has plummeted over 40% from its all-time high in mid-December, closing at around $272 on Wednesday compared to a peak of $479.
The company has also lost its leading position as the world’s top EV manufacturer, with revenue from Chinese electric vehicle giant BYD surpassing Tesla’s in 2024. BYD recently introduced chargers claiming to be four times more powerful than Tesla’s, capable of charging an EV in just five minutes.
Furthermore, the European Automobile Manufacturers Association reported that Tesla’s sales in Europe have dropped by 42% during the first two months of the year. Representatives for Tesla did not immediately respond to a request for comment from Business Insider.
