Tesla just made a formal entry into the Saudi market! They opened their initial flagship showroom and service center in the capital city of Riyadh. This long-awaited milestone is a significant victory lap for the electric vehicle maker. In particular, it is seeking to build its footprint through the Middle East. The new design center will serve as a hub for many of Tesla’s vehicles, including the Model 3, Model Y and the much-anticipated Cybertruck. In addition, a series of pop-up stores that include The Fashion Gate and Dune London are opening in Riyadh, Jeddah and Dammam.
The launch event attracted an enthusiastic audience. Influencers, automotive fans, and general public alike came to see the show-stopping reveal take place, and it didn’t disappoint. Just about every attendee was excited to see Tesla CEO Elon Musk in person—or at least on video. Unfortunately, he canceled at the last minute. Though he could not be present, locally-based businessman Bader Khalid made sure to underscore the significance of Tesla’s recent foray into the state.
“It’s a beautiful step we’ve been waiting for — to finally see Tesla open in Saudi Arabia,” – Bader Khalid
Khalid touched on the importance of Tesla in the international EV landscape. As he put it, “Having them open to our market is a tremendous coup.”
Tesla’s first showroom opening timed just right to give a strong push to Saudi Arabia’s Vision 2030 project. The effort is intended to help diversify the economy and reduce the country’s reliance on oil. Electric vehicles will be central to this transition. It’s no surprise, then, that the government has set a target of 30% of all vehicles in Riyadh to be electric by 2030. However, challenges remain. Yet the kingdom still lacks basic infrastructure for electric vehicles, facing a shortage of public charging stations.
Moreover, the intense heat across Saudi Arabia raises questions about how well electric vehicles would perform, or how effective their batteries would be. Even so, Tesla’s growing influence might help jump-start other infrastructure fixes, with growing demand for electric vehicles.
Tesla’s entry also comes at a time when it faces criticism and vandalism in various parts of the United States and elsewhere, following Musk’s prominent role during President Donald Trump’s administration. US EV maker Lucid Motors is furthering its entanglements with Saudi Arabia. This electric vehicle mega-factory has deep ties to the kingdom. In 2022, Lucid executives made a high-profile announcement that they’d be constructing their first international manufacturing facility in Jeddah. This move helps to further establish the region as an emerging powerhouse for advanced automotive technology.
The involvement of Saudi Arabia’s Public Investment Fund as a major backer of Lucid Motors highlights the kingdom’s commitment to fostering a robust electric vehicle industry. As Tesla sets its roots in Saudi Arabia, it joins a dynamic landscape that is rapidly evolving toward sustainable transportation.
