RIYADH/DUBAI: Tesla entered the Saudi Arabian market this week, taking on a country with ambitious electric vehicle goals but limited infrastructure and lingering tensions from a past feud.

The EV maker began selling cars in the kingdom on April 10, despite challenges that include extreme desert heat and a lack of charging stations. On the 900-kilometre highway between Riyadh and Mecca, for example, there isn't a single charger.

Electric vehicle sales in Saudi Arabia totaled just 2,000 last year, according to analyst Sam Abuelsamid—fewer than Tesla typically delivers in a single day.

The company's slow arrival comes after years of absence linked to a public dispute between Elon Musk and Saudi Arabia's Public Investment Fund (PIF). The rift dates back to 2018, when Musk claimed he had "funding secured" to take Tesla private after meeting with PIF officials. When the deal didn't materialize, investors sued, and messages between Musk and PIF chief Yasir al-Rumayyan were made public.

In the years since, Tesla missed out on major investments from Riyadh's Vision 2030 initiative. According to PwC, Saudi Arabia is investing an estimated $39 billion in its EV sector. Chinese rival BYD has already made inroads, opening a Riyadh showroom in 2024.

Relations appear to be warming now. Musk's role in President Donald Trump's administration has opened new opportunities, and Trump is expected to visit Saudi Arabia soon.

"I suspect Tesla wants to firmly plant their flag in the Saudi market before President Trump's visit and then try to capitalise on momentum thereafter," said Robert Mogielnicki of the Arab Gulf States Institute.

But Musk faces hurdles. Tesla's recent global performance has been underwhelming, with a 13 percent drop in Q1 sales. In Saudi Arabia, the lack of charging infrastructure and harsh temperatures—often exceeding 50 degrees C—add to the difficulty.

"I think charging is probably one of the main, if not the main, point of concern," said Carlos Montenegro, BYD's general manager in Saudi Arabia.

The government aims to increase EV adoption to 30 percent by 2030 and has launched the Electric Vehicle Infrastructure Company to install 5,000 chargers, up from just 101 today.

"EV adoption (in Saudi Arabia) will likely remain below leading countries... but could still see growth," said Morningstar's Seth Goldstein.