Tesla's Saudi Arabia Launch Marks Warming Ties with Musk

Tesla announces its entry into the Saudi Arabian market, signaling a reconciliation with the kingdom after the 2018 dispute over a failed privatization bid. The company plans to showcase EVs and AI technologies in a Riyadh event amidst challenges in Europe and the U.S. political climate.

Tesla is set to begin sales in Saudi Arabia next month, marking an apparent resolution of past tensions between CEO Elon Musk and the kingdom. The electric vehicle manufacturer, which previously faced challenges after Musk's controversial 2018 tweet about taking Tesla private, had not entered Saudi Arabia until now.

The 2018 dispute arose when Musk claimed to have secured funding to take Tesla private, a plan linked to Saudi's Public Investment Fund that ultimately did not proceed, leading to legal action from investors. Recent developments suggest a thaw in relations, with Musk participating in events alongside key Saudi and U.S. figures.

Tesla's launch in Riyadh will feature its latest electric vehicles and solar-powered products. The move comes as the company faces declining EV sales in Europe and criticism in the U.S. due to Musk's political affiliations and leadership actions. Saudi's EV market remains small but the investment landscape is evolving.

(With inputs from agencies.)