Tesla plans to start selling cars in Saudi Arabia during the next month thus mending CEO Elon Musk's previously strained relationship with the Saudi Arabian kingdom. The company made its decision to enter Saudi markets following tense times that resulted from Musk's attempt to privatize Tesla in 2018.

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The largest market of the Middle East remains without Tesla's presence since the automaker maintains operations across other regional countries but has yet to enter Saudi Arabia. The dispute between Musk and Saudi Arabia PIF evolved from a 2018 tweet about securing funding to privatize Tesla through discussions with the Public Investment Fund (PIF). The failed privatization effort set off legal battles with investors while releasing confrontational messages between Musk and PIF director Yasir al-Rumayyan went public.

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The relationship between the companies improved after Musk supported Donald Trump during his presidential campaign followed by Trump taking office. Trump wants to build closer relationships with Saudi Arabia and he mentioned arranging a trip to the country.

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During its April 10th Riyadh launch event Tesla will present its electric vehicle lineup together with solar power products. Visitors at the event will witness Cybercab autonomous driving demonstrations as well as Optimus humanoid robot demonstrations showcasing Tesla's AI and robotics progress. Attendees of the forthcoming event need to specify which Tesla model they prefer before the invitations become valid.

The company launches its products at a time when Tesla faces deteriorating EV European sales because of Musk's political stance while U.S. taxpayers demonstrate against his public funding reductions.

The Saudi Arabian market for electric vehicles remains slow to develop as per PwC projections it represents only 1% of total sales. The PIF made investments into both Lucid and Ceer which operate rival EV start-up businesses and domestic automobile brands respectively. The large proportion of gasoline-powered transportation and insufficient network of EV charging stations make it difficult for Tesla to enter new markets.

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Despite these challenges, Tesla's launch in Saudi Arabia signifies a significant development in the company's global expansion and the restoration of relations with a key Middle Eastern market.