Faith Nyasuguta
At a pivotal moment for Tesla, Saudi Arabia has opened its doors to Elon Musk’s electric vehicle company. The Gulf’s largest economy is set to welcome Tesla in April, offering Musk a much-needed opportunity as the company struggles with declining sales and a plunging stock price.
Tesla announced a launch event in Riyadh on April 10, marking its official entry into the Saudi market. The event, set to take place at Bujairi Terrace, will showcase the company’s latest advancements in AI and robotics.
Attendees will get a first-hand look at Cybercab, Tesla’s vision for autonomous driving, and meet Optimus, the humanoid robot. The company also promises to have representatives on-site to answer questions about Tesla ownership, home charging, and more.
Despite this new venture, Musk’s history with Saudi Arabia’s Public Investment Fund (PIF) has been complicated. In 2018, Musk famously tweeted that he was considering taking Tesla private at $420 per share, claiming that funding was secured. He later explained in a company blog post that he had met with representatives from the Saudi sovereign wealth fund, who had shown interest in the deal. However, PIF never formally committed to funding, leading to the collapse of the plan.
The fallout was significant. Musk and Tesla were sued by investors, who argued that his premature announcement led to financial losses. During the trial, Musk accused PIF of backpedaling on their initial discussions. Adding to the tension, later in 2018, Saudi Arabia invested $1 billion in Lucid Motors, a key Tesla rival in the EV space.
Now, Tesla’s arrival in Saudi Arabia comes at a critical time. The company has lost its position as the world’s top EV manufacturer, with Chinese giant BYD overtaking it in revenue. Tesla’s stock has plunged over 40% from its December highs, dropping from $479 to $272. Meanwhile, BYD has launched EV chargers that claim to be four times more powerful than Tesla’s, reducing charging time to just five minutes.
Adding to Tesla’s troubles, its European sales dropped 42% in the first two months of 2024, according to the European Automobile Manufacturers Association.
As Musk enters the Saudi market, the question remains, will this move be enough to revive Tesla’s struggling fortunes, or is it merely a temporary boost in a rapidly shifting EV landscape?
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