Tesla Enters Saudi Market with Showrooms in Riyadh, Jeddah, and Dammam

Tesla, the global electric vehicle (EV) pioneer led by billionaire Elon Musk, has officially launched its first showrooms in Saudi Arabia, signaling a major step toward its long-term Middle East strategy. New locations in Riyadh, Jeddah, and Dammam mark the brand’s debut in the oil-rich kingdom, with charging stations in all three cities set to go live by Friday.

Tesla’s Country Manager for Saudi Arabia, Naseem Akbarzada, described the move as the beginning of a “long-term presence” in the country, which aligns with Saudi Arabia’s ambitious Vision 2030 goals aimed at diversifying the economy and reducing oil dependency.

Video Credits: Tesla

A Tough Road for EV Adoption in the Kingdom

Despite the high-profile launch, Tesla faces significant challenges in the Saudi market. Low fuel prices—around 2.33 riyals ($0.62) per liter—make traditional combustion engines more economical for everyday use. Additionally, harsh desert climates and long driving distances between major cities pose serious concerns for EV performance and range.

For instance, the distance between Riyadh and Jeddah is approximately 950 kilometers (590 miles)—a range that exceeds the capacity of many standard EV batteries.

As of now, Saudi Arabia has only 101 public charging stations, a stark contrast to the 261 in the UAE, a smaller neighboring nation. However, Saudi authorities aim to install 5,000 charging stations by 2030, reinforcing their commitment to clean energy and electric mobility.

Video Credits: AP

Growing EV Market and Local Production Demand

Although still in its infancy, the Saudi EV market is showing signs of acceleration. According to Al-Iqtisadiyah, EV sales in the kingdom tripled last year, reaching nearly 800 units.

Government-backed investments are helping shape the future landscape. The Public Investment Fund (PIF) holds a 60% stake in luxury EV brand Lucid Motors, which has already broken ground on a production facility in Saudi Arabia. Additionally, PIF has partnered with Hyundai to develop a plant for both electric and petrol vehicles.

Local economist Mohammed Al-Qahtani welcomed Tesla’s entry but urged the company to invest deeper. “We do not want a showroom; we want a factory,” he remarked, underlining the need for local production to drive economic and technological growth.

Outlook

Tesla’s expansion into Saudi Arabia comes at a time when the company is grappling with declining global sales and a drop in share value. Nonetheless, its move into one of the world’s most oil-dependent nations reflects a strategic bet on the region’s shift toward sustainable energy.

Whether Tesla can scale in a market still warming up to EVs remains to be seen. But with government backing, rising environmental awareness, and increasing EV infrastructure investment, the potential for growth is clear.

Afsheen Gohar

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