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

Tesla will begin sales in Saudi Arabia next month, indicating improved relations between CEO Elon Musk and the kingdom following their previous conflict over Musk’s 2018 bid to take the company private, which led to legal issues. The launch event is scheduled for April 10 in Riyadh amid Tesla’s challenges in other markets due to political controversies.

Tesla is set to commence sales in Saudi Arabia next month, as announced on its website on March 26. This development indicates a reconciliation between CEO Elon Musk and the Saudi kingdom, following their previous fallout stemming from Musk’s 2018 attempt to take the company private. This incident was triggered by his Twitter declaration of having “funding secured” from Saudi Arabia’s Public Investment Fund, ultimately resulting in a lawsuit from investors.

The lawsuit highlighted the strained relationship between Musk and Yasir al-Rumayyan, the head of the Public Investment Fund, due to the release of tense text messages. However, tensions have diminished since the autumn, particularly after Musk’s prominent involvement in former President Donald Trump’s election campaign. Trump recently stated his intention to make Saudi Arabia his first international destination.

Tesla has scheduled its launch event for April 10 in Riyadh. This key event comes amid a backdrop of declining electric vehicle sales in Europe for Tesla, attributed to Musk’s political affiliations with right-wing figures. Additionally, the brand has faced protests in the U.S. in response to Musk’s controversial decision-making in federal governance.

In conclusion, Tesla’s anticipated launch in Saudi Arabia marks a significant step towards mending relations between Elon Musk and the kingdom after their prior dispute. The forthcoming event is pivotal as it occurs against the backdrop of Tesla’s declining sales in Europe and ongoing political controversies involving Musk. Overall, this development represents a new chapter for Tesla in the Middle Eastern market and beyond.

Original Source: www.marketscreener.com