Tesla to Launch Sales in Saudi Arabia as Relations with Musk Improve

Tesla will commence sales in Saudi Arabia next month, signifying improved relations between CEO Elon Musk and the kingdom following past disputes. The launch event is set for April 10 in Riyadh, amid declining EV sales in Europe and protests in the U.S.

Tesla is poised to initiate vehicle sales in Saudi Arabia starting next month, a development announced on its official website on March 26. This move signifies a reconciliation between CEO Elon Musk and the Saudi government, marking a resolution to their previous disputes stemming from Musk’s 2018 attempt to take Tesla private with the backing of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF).

The contentious relationship surfaced when Musk tweeted about having “funding secured” for the privatization venture, which later led to a lawsuit from investors when the proposal failed to materialize. Subsequent legal proceedings revealed contentious communication between Musk and Yasir al-Rumayyan, the head of PIF. However, indications of thawing relations emerged in the autumn, coinciding with Musk’s involvement in former President Donald Trump’s election campaign, who recently announced intentions for a visit to Saudi Arabia.

Tesla’s launch event is scheduled for April 10 in Riyadh. This market entry occurs amid declining electric vehicle sales in Europe, attributed to Musk’s public alliances with certain political figures. Furthermore, the company faces protests in the U.S. due to ongoing reductions in federal government support under Musk’s leadership.

In summary, Tesla’s upcoming launch in Saudi Arabia indicates a significant improvement in relations between Elon Musk and the kingdom, moving past earlier disputes stemming from Musk’s controversial privatization bid. The launch is timely as Tesla navigates declining sales in Europe and demonstrations within the U.S., encapsulating Musk’s complex engagement with global politics.

Original Source: www.marketscreener.com