Tesla Debuts in Saudi Arabia with First Showroom and Service Hub in Riyadh

Tesla has officially launched operations in Saudi Arabia, marking a significant step in its global expansion. The electric vehicle (EV) giant opened its first showroom and service center in the capital city of Riyadh, making its long-anticipated debut in the Kingdom. The move comes amid ongoing efforts by Saudi Arabia to promote electric mobility as part of its Vision 2030 initiative.

Complicated History Between Elon Musk and Saudi Arabia

The launch comes years after a strained chapter in Elon Musk’s relationship with Saudi Arabia. In 2018, Musk had claimed that Saudi Arabia’s sovereign wealth fund would support a plan to take Tesla private. However, that deal never materialized, leading to tensions that lingered in the years that followed.

Despite the history, Tesla’s entry signals a renewed engagement between Musk’s company and the Kingdom as both align on clean energy ambitions and EV innovation.

Tesla Showroom Launch Attracts Enthusiastic Crowd in Riyadh

The Riyadh showroom launch event drew an enthusiastic and diverse audience, including car enthusiasts, content creators, and local businessmen. The facility showcases Tesla’s popular models such as the Model 3, Model Y, and the Cybertruck. Additionally, temporary pop-up stores are being set up in Jeddah and Dammam to promote brand visibility across the Kingdom.

Local businessman Bader Khalid expressed optimism:
"It's a beautiful step we've been waiting for to finally see Tesla open in Saudi Arabia. The country is clearly moving toward electric vehicles."

Extreme Heat and Infrastructure Pose Challenges

Tesla's entry into the Saudi market isn’t without its challenges. The Kingdom’s extreme climate could impact EV battery efficiency and vehicle performance. High ambient temperatures are known to reduce battery range and require better thermal management systems.

Infrastructure also remains a hurdle. Saudi Arabia currently has a limited number of public EV charging stations, though the government has pledged to expand the network significantly as part of its national sustainability goals.

Local Support for Musk Remains Strong

Elon Musk continues to enjoy strong fan support in Saudi Arabia. Locals see him as a visionary shaping the future of technology and mobility.

"He’s always looking ahead," said teenager Mohammed Osama. "Maybe a few things don’t make sense now, but in the future, they will. He’s building something bigger."

Although many attendees hoped for a personal or video appearance by Musk at the launch event, he did not participate.

Global Politics Unlikely to Affect Local Perception

Despite controversies surrounding Musk’s political involvement in the U.S., including criticism over his role in the Trump administration’s “Department of Government Efficiency” (DOGE) initiative, Saudis appear undeterred.

"Political events outside of Saudi Arabia don’t concern us," said Khalid. "I don’t think this has any effect on Tesla’s image or performance here."

Tesla Faces Competition from Lucid Motors in the Region

Tesla’s entry also brings competition to Lucid Motors, a U.S.-based EV brand with strong ties to Saudi Arabia. The Kingdom’s Public Investment Fund (PIF) holds a majority stake in Lucid, and the company is building its first international factory in Jeddah.

Lucid’s established relationship and local manufacturing plans could give it an early-mover advantage, but Tesla’s global brand appeal is expected to attract a significant customer base.

EV Growth in Line with Vision 2030 Goals

Saudi Arabia’s growing interest in EVs is central to its Vision 2030 strategy, which aims to diversify the economy and reduce dependency on oil. A key target is for 30% of vehicles in Riyadh to be electric by 2030. Tesla’s arrival is expected to accelerate progress toward that goal and increase consumer interest in EVs nationwide.