Musk's Saudi Vision: Tesla Robotaxis, Starlink, And More

Word on the StreetWednesday, May 14, 2025 7:30 am ET
1min read

In recent days, U.S. President Donald Trump has been visiting three Middle Eastern countries- Saudi Arabia, Qatar, and the UAE- with Tesla CEO Elon Musk among his entourage.

At the Saudi-U.S. Investment Forum held on Tuesday, Musk publicly expressed his desire to introduce Tesla's robotaxi service to Saudi Arabia. Notably, Uber had previously announced plans to launch autonomous vehicle services in the country this year.

He also revealed that his satellite internet service, Starlink, has received approval from Saudi Arabia for maritime and aviation applications, expressing his gratitude for the decision.

Musk told Saudi Minister of Communications and Information Technology Abdullah Alswaha, "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."

However, he provided no further details or a specific timeline. It's worth noting that Tesla has not yet launched its robotaxi service to the public anywhere in the world. The company previously stated plans to roll out a pilot program in Austin in June. Musk indicated that expansion should follow quickly thereafter.

Separately, reports revealed that Musk showed Tesla's Optimus humanoid robot- currently under development- to both President Trump and Saudi Crown Prince Mohammed bin Salman. For years, Tesla has told investors that autonomous vehicles and humanoid robots are key to its future profitability.

Before Musk's announcement, Uber revealed on May 6 that it plans to deploy robotaxis in Saudi Arabia later this year through a partnership with China's Pony.ai. However, the company has yet to specify an exact date.

Uber has a substantial user base in Saudi Arabia, with its Careem app being one of the most popular ride-hailing platforms in the Middle East, operating in 26 cities across the Kingdom.

On Tuesday, Saudi Arabia's Transport General Authority posted on X that it had signed a non-binding memorandum of understanding (MoU) with Uber to introduce autonomous vehicles in the country.

The back-to-back moves by the two tech giants have drawn attention. Saudi leaders have stated that they envision autonomous vehicles playing a role in the country's broader "Vision 2030" plan, which aims to reduce the region's economic reliance on oil through heavy investments in technology. Last year, the country also released a regulatory framework for the adoption of self-driving cars.

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