Musk's Tesla launched in Saudi Arabia as kingdom sees high EV demand

Saudi Arabia observes EV market triple in 2024 as 800 units of EVs were sold
A staff member looks at Teslas new Model 3 next to Model X SUV at the China International Fair for Trade in Services (CIFTIS) in Beijing, China, September 2, 2023. — Reuters

A staff member looks at Tesla's new Model 3 next to Model X SUV at the China International Fair for Trade in Services (CIFTIS) in Beijing, China, September 2, 2023. — Reuters

In a bid to expand its footprint worldwide, Elon Musk-owned electric vehicle (EV) company, Tesla, has launched in Saudi Arabia, opening its first showroom in Riyadh.

Saudi Arabia has long been dominated by conventional, fuel-powered vehicles, thanks to the extremely affordable petrol, and

Tesla's foray into the oil-rich kingdom comes amid significant backlash and declining sales in the US.

Despite having the cheapest fuel, the country is reportedly witnessing an uptick in the demand for EVs.

According to Reuters, the country, once known for its vast expanse of deserts, observed its EV market triple in 2024 when approximately 800 units of EVs were sold in the country. 

This emerged in the wake of EV infrastructural woes in Saudi Arabia as the kingdom houses only 101 public EV charging stations.

Because of the huge distances between cities, such as the 950-kilometre journey from Riyadh to Jeddah, EVs have become a more feasible option for short Urban trips compared to inter-country travel.

Stressing comprehensive industrial incorporation, such as the domestic manufacturing of EVs, Saudi economist Mohammed Al-Qahtani warmly welcomed Tesla in the country.

The Saudi government has been taking appropriate measures to facilitate the accessibility, adoption and maintenance of EVs, as it has announced to install 5,000 EV charging sites by 2030 and recently inked a deal with Hyundai to establish a mixed-fuel vehicle plant.