Tesla Begins Sales in Saudi Arabia Amid Challenges

Tesla is commencing sales in Saudi Arabia, marking a significant step in mending relations between Elon Musk and the kingdom's Public Investment Fund (PIF) after a previous fallout over Tesla's privatization plans. The launch signifies a potential market entry despite Saudi Arabia's current lack of EV infrastructure, such as charging stations, and modest EV sales. This move aligns with Saudi Arabia's ambitious goals to grow its EV market, targeting the production of 500,000 battery-powered vehicles by 2030. Improved relations with Saudi Arabia are facilitated by Musk's connection to the Trump administration, with President Trump's upcoming visit potentially boosting Tesla's positioning in the region. Nonetheless, Tesla faces challenges, including competition from locally-backed Lucid Motors and declining global sales. Analysts project Tesla could deliver 30,000 vehicles annually in Saudi Arabia, contributing to its recovery strategy amid a broader sales decline.