Ahead of Trump's Middle East Tour... Tesla Enters Saudi Arabia

Full-scale Electric Vehicle Sales Begin on the 10th
Only 2,000 Electric Vehicles Sold in Saudi Arabia

Electric vehicle company Tesla, led by CEO Elon Musk, has entered the Saudi Arabian market ahead of U.S. President Donald Trump's Middle East tour.

On the 9th (local time), Tesla announced through its website that it will hold an event in Riyadh, the capital of Saudi Arabia, on the 10th to commemorate its local entry and officially begin selling electric vehicles.

At the event, Tesla plans to introduce and demonstrate its existing electric vehicle models, the 'Cybercap' under development as an autonomous vehicle, and the humanoid robot 'Optimus.'

Although electric vehicle sales in Saudi Arabia were only about 2,000 units last year, the Saudi government is investing $39 billion, approximately 57 trillion KRW, in the development of the electric vehicle sector.

Locally, over 40% of consumers responded that they would consider purchasing electric vehicles in the future; however, consulting firm PwC forecasted that the adoption of electric vehicles would be difficult due to lack of purchasing power, limited infrastructure, and risks related to high temperatures.

Furthermore, with President Trump's Saudi visit expected as early as next month, large-scale investment plans between the two countries are anticipated to be discussed. According to U.S. media, American companies including Tesla are seeking to leverage this opportunity to secure business prospects in Saudi Arabia.

Bloomberg News evaluated this by stating, "Tesla's entry into Saudi Arabia is a new sign that Musk has improved relations with Saudi Arabia after conflicts with Yasir Al-Rumayyan, chairman of the Public Investment Fund (PIF) valued at $925 billion."

About six years ago, in August 2018, CEO Musk caused a stir by posting that "Tesla will be taken private. Funding is secured." Following this, investors who suffered losses due to the stock price decline filed lawsuits against Musk, who claimed he was promised funding support from the Saudi sovereign wealth fund for Tesla's privatization but was betrayed. Later, when Musk appeared at an event hosted by Saudi Arabia last year, interpretations arose that relations had been restored.

This content was produced with the assistance of AI translation services.