Tesla Launching Sales in Saudi Arabia Amid Mended Relations with Kingdom
Tesla will begin sales in Saudi Arabia next month, signaling mended relations between CEO Elon Musk and the kingdom after past tensions. Musk’s 2018 bid to take Tesla private, which included a controversial tweet about having “funding secured”, had sparked legal disputes. The reconciliation follows Musk’s involvement in Trump’s election campaign.
Tesla is set to initiate sales in Saudi Arabia next month, announcing this development on its website on March 26. This move signifies a reconciliation between CEO Elon Musk and the Saudi kingdom, following previous tensions. The friction originated from Musk’s attempt in 2018 to privatize Tesla, which involved a controversial tweet claiming he had “funding secured”.
The communication led to a lawsuit from investors after the privatization bid did not materialize, bringing to light intense text exchanges between Musk and the head of Saudi Arabia’s Public Investment Fund, Yasir al-Rumayyan. However, relationships have improved, especially since Musk became involved in former President Donald Trump’s election campaign last autumn. The potential benefits of this restored alliance were underscored when Trump indicated he would likely visit Saudi Arabia soon.
Tesla’s launch event is scheduled for April 10 in Riyadh. This comes at a time when the company has experienced a decline in electric vehicle sales in Europe, attributed to Musk’s political affiliations with far-right figures. Additionally, protests against Tesla in the U.S. have intensified amid Musk’s significant federal budget reductions.
In summary, Tesla’s upcoming sales launch in Saudi Arabia represents a significant shift in relations between Elon Musk and the kingdom following prior disputes. The reconciliation indicates a strategic pivot for Tesla amid declining sales in Europe and a complex political landscape. The April 10 event will mark a notable milestone for Tesla’s expansion efforts, highlighting Musk’s evolving political associations and their impact on the brand’s market presence.
Original Source: www.marketscreener.com
