Tesla launches first showroom in Saudi Arabia amid tumbling sales

While the move signals a boost to the kingdom’s electric vehicle ambitions under Vision 2030, challenges remain, given the extreme heat conditions in the country, which could impact EV battery performance, the AP report stated. In addition to this, Saudi Arabia’s limited charging infrastructure could also pose hurdles to Tesla’s venture.

People attend a celebration for the start of Tesla operations in Saudi Arabia in historic Diriyah near Riyadh, Saudi Arabia, on Thursday, April 10, 2025 (AP Photo/Baraa Anwer)

Though Tesla has faced criticism, along with recent instances of vandalism in parts of the United States and abroad — especially after Elon Musk assumed a prominent role in US President Donald Trump’s administration — the sentiment in Saudi appears largely unaffected.

Much of the backlash abroad has stemmed from Musk’s leadership of the Department of Government Efficiency, or DOGE, a controversial federal agency tasked with drastically reducing the size of the US government. The agency’s sweeping reforms have included large-scale layoffs, the cancellation of longstanding contracts, and the shutdown of various federal programmes — moves that have sparked protests and political tensions in several US states.

Despite these controversies, many in Saudi Arabia remain optimistic about Tesla’s success in the kingdom.

“Tesla is one of the most important EV companies in the world,” AP quoted local businessman Bader Khalid as saying. “It’s a beautiful step we’ve been waiting for.”

Tesla’s launch comes even as its rival EV maker Lucid Motors — backed by Saudi Arabia’s sovereign wealth fund — is building a plant in Jeddah, marking the kingdom’s growing push to lead in green mobility.

– With inputs from AP