Tesla Prepares Saudi Market Entry with Riyadh Event

Tesla will kick off car sales in Saudi Arabia today, April 10, 2025. The company has a launch event planned at Bujairi Terrace in Riyadh to mark the start. Here’s what you need to know.

Tesla’s event tonight at Bujairi Terrace in Riyadh will signal the official start of its car sales in Saudi Arabia. The company plans to show its electric vehicles, including the Cybercab, and its Optimus humanoid robot.

The event runs from 8:00 PM to 11:00 PM. It’ll give people a chance to check out Tesla’s lineup and ask about ownership and charging. Tomorrow, April 11, Tesla will open pop-up stores in Riyadh, Jeddah, and Dammam.

Why Saudi Arabia matters

Saudi Arabia’s car market moves about 700,000 new vehicles each year, mostly SUVs. Electric vehicles account for just 1% of that, per a PwC report from September 2024.

The country’s Vision 2030 plan wants to shift that. It’s investing $39 billion in the EV sector by 2030 to move away from oil. Tesla’s entry lines up with this effort, even if it’s starting small.

Growth plans

Tesla’s launch isn’t just a one-day show. The pop-up stores opening tomorrow are the first move. The company aims to put more money into Saudi Arabia starting this year and beyond. Permanent showrooms and service centers might come later, along with a Supercharger network.

Challenges ahead

Selling electric cars in Saudi Arabia won’t be simple. There’s no charging station on the 900-kilometer stretch between Riyadh and Mecca, per Reuters.

Desert heat and limited infrastructure could hold things back. Gas-powered cars still dominate here, where fuel costs little.

Competition and context

Tesla faces others in this market. China’s BYD, with $107 billion in sales in 2024, and Lucid, tied to Saudi Arabia’s Public Investment Fund, are active. Lucid delivered 10,241 vehicles last year.

Tesla, with $98 billion in sales, saw a 1% drop globally in 2024 and a 40% fall in European sales in February 2025 from the year prior.

Past tensions, new ties

Elon Musk and Saudi Arabia had a rocky history. In 2018, Musk tweeted about taking Tesla private with “funding secured” from the Public Investment Fund. That fell apart, and text messages showed the strain with PIF head Yasir al-Rumayyan. Things have warmed up since.

Musk’s role in Donald Trump’s administration and Trump’s planned May 2025 visit to Saudi Arabia might have smoothed the way. The PIF, handling $925 billion, also funds Lucid and a local EV brand, Ceer.

Looking forward

Tesla’s move into Saudi Arabia begins tonight with the launch event. The pop-up stores tomorrow will follow through. The country’s EV goals and Musk’s better ties with its leaders set the stage. Tesla still has to tackle competition and infrastructure limits to make this work.