RIYADH, Saudi Arabia: Tesla is finally entering Saudi Arabia, with a launch scheduled for next month—marking a significant shift in the company's relationship with the kingdom after years of tension.

The electric vehicle giant announced on its website that it would officially begin operations in Saudi Arabia on April 10, accompanied by a high-profile launch event in Riyadh, showcasing Tesla cars, solar-powered products, and its humanoid robot, Optimus. "Experience the future of autonomous driving with Cybercab, and meet Optimus, our humanoid robot, as we showcase what is next in AI and robotics," the company said.

The move signals a thaw in relations between CEO Elon Musk and Saudi authorities, particularly the powerful Public Investment Fund (PIF), after a public fallout stemming from Musk's 2018 tweet claiming he had "funding secured" to take Tesla private following discussions with the fund. The deal never materialized, leading to investor lawsuits and the release of tense messages between Musk and PIF head Yasir al-Rumayyan. "You are throwing me under the bus," Musk wrote in one exchange, revealed in court.

A U.S. jury later found that Musk was not liable for misleading investors, and relations between the two parties appear to have warmed. Musk appeared with Rumayyan and President Donald Trump at a UFC match in New York last November and later joined Riyadh's Future Investment Initiative summit by video.

While Tesla already sells in neighboring markets like the UAE, it had yet to break into Saudi Arabia, despite it being the largest car market in the Gulf. EVs currently account for just one percent of total car sales in the country, where fuel remains relatively cheap and charging infrastructure is sparse.

Tesla plans to open pop-up stores in Riyadh, Jeddah, and Dammam on April 11 and will share more on its Saudi strategy in the coming weeks, with investment slated for 2025 and beyond.

The kingdom already hosts rivals, such as PIF-backed Lucid and China's BYD. The PIF, which manages over $900 billion in assets, also supports a domestic EV brand called Ceer.

Tesla's European sales have slumped in 2024, and the company has faced backlash in the U.S. over Musk's political ties and role in sweeping government cuts.