Tesla officially launched its operations in Saudi Arabia on Thursday, marking a new chapter in the global expansion of the American electric vehicle (EV) manufacturer. The move aligns with the Kingdom’s strategic push to accelerate the adoption of EVs across the country.
Official Debut Featuring Cybertruck and Redesigned Model Y
The launch event in the Saudi capital showcased Tesla’s Cybertruck and the redesigned Model Y, set against a vibrant backdrop of palm trees. Attendees were treated to a large open-air video presentation, featuring the Cybertruck traversing the desert and kicking up clouds of sand—highlighting the vehicle’s rugged performance and suitability for local conditions.
First Showroom and Service Center Opens in Riyadh
Tesla opened its first showroom and service center in Riyadh, marking the company’s long-anticipated official entry into the Saudi market. The showroom offers several Tesla models, including the Model 3, Model Y, and Cybertruck. The company also plans to open temporary retail locations in Jeddah and Dammam in the near future.
Tesla Faces Global Headwinds
This launch comes at a time when Tesla is working to expand its global customer base, following a 13% drop in vehicle deliveries during Q1 2025—its weakest quarterly performance in nearly three years. The decline has been linked to growing backlash against Elon Musk’s political affiliations, intensifying competition, and the aging of Tesla’s vehicle lineup.
Saudi Arabia Pushes Toward Sustainable Transport
Saudi Arabia—already a major investor in Tesla rival Lucid Motors—aims to have electric vehicles account for 30% of all cars in the Kingdom by 2030, up from approximately 1% in 2023. This target forms part of the country’s broader strategy to transition to a more sustainable and diversified economy.
To support this transformation, the Kingdom has established the Electric Vehicle Infrastructure Company, which plans to increase the number of EV charging stations from 101 in 2024 to 5,000 by 2030, according to data from Statista based on Electromaps, a global EV charging station tracker.
Growing Competition in the Local Market
Tesla enters a competitive Saudi EV market already populated by Chinese brands like BYD and Zeekr, as well as Lucid Motors—backed by the Saudi Public Investment Fund—which has established a local manufacturing presence.
A Promising Future for EVs in the Kingdom
With expanding infrastructure and increased public and private investment, Saudi Arabia is poised for a major transformation in its transport sector. These efforts aim to reduce emissions and help the Kingdom achieve its ambitious sustainability and clean energy goals.
