Tesla CEO Elon Musk is looking to bring the company’s highly anticipated robotaxi service to Saudi Arabia, a move that aligns with the Kingdom’s Vision 2030 plan and Tesla’s broader strategy to reignite growth through global expansion.
Musk made the pitch during the U.S.-Saudi Investment Forum in Riyadh, telling Saudi Minister of Communications and Information Technology, Abdullah Alswaha, that the Kingdom would be an ideal market for autonomous vehicles.
“Really, you can think of future cars as being robots on four wheels, and I think it would be very exciting to have autonomous vehicles here in the Kingdom if you’re amenable,” Musk said during a panel session at the forum.
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Robotaxi as Tesla’s Recovery Bet
Musk did not give a timeline for the rollout in Saudi Arabia, but Tesla is set to pilot its robotaxi service in Austin, Texas, this June. The launch will mark the beginning of what Musk hopes will be a rapid global deployment of autonomous vehicles — a central pillar in Tesla’s next growth phase.
Tesla’s push into robotaxis is not just about innovation — it’s a calculated business move amid intensifying competition in the U.S. electric vehicle market. As sales slow globally and rivals such as Ford, Rivian, and Chinese automakers eat into Tesla’s share, the company is under pressure to find new revenue streams and growth frontiers.
Tesla has described the robotaxi service as a revolutionary model that can turn its cars into income-generating assets for owners. In a post from Tesla’s official account, the company said: “With the Robotaxi Network, your Tesla will be able to earn money while you’re not using it, essentially paying for itself — it will go to work, just like you.”
This concept is aimed at increasing the appeal of Tesla vehicles by offsetting their high purchase price with potential income from autonomous ride-hailing services — a game-changing pitch that no other automaker is currently offering at scale.
Dan Ives, a longtime Tesla bull and analyst at Wedbush Securities, reinforced the importance of this strategy.
“I disagree that the Waymo/Toyota is a groundbreaking deal and a threat to Tesla. Tesla will own the autonomous market in my view and no one can compete with their scale and scope. It starts in Austin in June then the autonomous journey begins. Key chapter of growth,” Ives said in a recent note.
Why Saudi Arabia?
Saudi Arabia is aggressively investing in cutting-edge technologies to reduce its dependence on oil. Vision 2030, the Kingdom’s economic diversification blueprint, has earmarked tech and mobility as priority sectors. The country has already released a regulatory framework for autonomous vehicles and is welcoming partnerships to accelerate their adoption.
On the same day Musk spoke in Riyadh, Saudi Arabia’s Transport General Authority announced a memorandum of understanding with Uber to launch robotaxis in the country. Uber plans to roll out autonomous vehicles with onboard safety operators in 2025, working in collaboration with Chinese tech firm Pony.AI. The MOU signals intent but does not yet guarantee deployment.
Uber is already a dominant player in Saudi Arabia’s ride-hailing market, operating both under its brand and through its regional subsidiary Careem, which serves 26 cities across the Kingdom. Pony.AI, however, carries some baggage. Its U.S. operations were suspended after California revoked its permit in 2022 over multiple safety violations.
Tesla, by contrast, has a global reputation and an integrated approach to autonomy, controlling both hardware and software development. That full-stack model — something competitors like Waymo, Uber, and Apple do not offer — positions Tesla to scale faster, according to analysts.
A High-Stakes Global Race
Tesla’s international ambitions for robotaxis are heating up at a time when global regulatory momentum around self-driving vehicles is beginning to shift. Countries like Saudi Arabia are opening up to autonomous technologies, seeing them as integral to smart cities and next-generation mobility.
If successful, the Saudi venture could serve as a launchpad for Tesla into the broader Middle East and North African markets, where public transportation infrastructure is still developing and tech-savvy populations are open to disruptive innovation.
Tesla’s competitors are not standing still. Alphabet’s Waymo and Toyota are teaming up to expand their robotaxi services in select U.S. cities. Apple is also quietly developing autonomous tech. But unlike Tesla, most of these players rely on third-party vehicle platforms or lack the end-to-end integration that gives Tesla control over production costs, software updates, and data.
However, the success of Musk’s pitch depends much on what happens in Austin. If Tesla successfully rolls out its robotaxi pilot next month, it could pave the way for international deals like the one Musk is seeking in Saudi Arabia. The company still faces regulatory scrutiny, public skepticism, and unresolved safety concerns, but the economic logic of autonomous fleets — vehicles that work around the clock, generate income, and reduce congestion — is too compelling to ignore.
Musk, never short on ambition, believes Tesla will not only dominate the EV space but also lead the future of transportation through autonomy. Saudi Arabia, with its big tech appetite and strategic need to diversify, may prove to be an ideal partner in that journey.