Consumer action: Protests against Elon Musk’s company have taken place across the US, but Tesla plans to open an office in maverick state Saudi Arabia in April. Photo: Greg Lilly
There is increased pressure on oil-producing countries to do more to limit the effect of climate change.
Some of these countries have begun making efforts and have detailed plans to address climate change. Azerbaijan, one of the major oil-producing countries in the world, for example, has committed to a 40% reduction in greenhouse gas emissions by 2050 compared to 1990 levels and aims to increase renewable energy to 30% of its total electricity capacity by 2030.
Among the first executive orders US President Donald Trump signed after taking office was the withdrawal from several treaties and agreements on climate change. He signed an executive order declaring a national energy emergency — a directive aimed at rolling back regulations on the oil and gas sector and accelerating drilling and pipeline development.
In his inauguration speech, Trump insisted that the US would “Drill, baby, drill”, emphasising that the country would intensify oil drilling and encourage increased oil production to boost its economy.
This position contradicts those taken by previous administrations. Under the Biden administration, the US took a strong stance on climate action, committing to a 61% to 66% reduction in net greenhouse gas emissions by 2035. It also set a goal of reaching net-zero emissions by 2050.
Moreover, the US had accelerated the transition to a clean energy economy, aiming to reduce oil demand rather than production.
Trump has reversed those commitments. Notably, he has withdrawn from the Paris Accord — an international treaty adopted in 2015 aiming to limit global warming to below 2°C, among other goals.
The US company Tesla has been innovative in the production of electric vehicles (EVs), arguably compensating for the US’s shortcomings in its climate change efforts. Tesla has been praised globally for its technology and introduction of efficient and competitive alternatives to petrol-powered vehicles. It has significantly reshaped the perception of EVs by demonstrating their viability, performance and desirability — moving them from niche to mainstream and inspiring other car makers to invest heavily in EV technology.
Tesla’s core offering has not only targeted car enthusiasts; the company prides itself on accelerating the transition to sustainable energy, building products designed to replace some of the planet’s biggest polluters.
Tesla’s products have also appealed to environmentalists. Tesla claims that, because of its technology, in 2023 customers avoided releasing over 20 million metric tonnes of CO2 equivalents (a unit of measurement used to standardise the climate effects of greenhouse gases) into the atmosphere.
Tesla’s founder, Elon Musk — the world’s richest man — joined the Trump 2.0 administration in January 2025. He has endorsed conservative policies on governance and has become a central figure among those opposing climate change policies.
Consequently, many Tesla clients and patrons are increasingly feeling betrayed by a company that, since its establishment in 2003, has operated under global environmental concerns. Protests against Tesla have been organised across the US and Europe. Musk’s support for and association with the Make America Great Again movement and his involvement in the Trump administration have intensified calls to boycott Tesla.
Crowds protesting against the purge of the US government under Trump have been congregating outside Tesla dealerships in the US and in some European cities. Tesla clients have also expressed concern about their indirect support of Trump through their patronage of the company. According to CBS News, Elon Musk spent more than a quarter of a billion dollars to back then president-elect Trump and other Republican candidates.
Musk is leading the department of government efficiency (Doge), a new entity in the Trump 2.0 administration aimed at improving government efficiency, cutting wasteful expenditure and increasing revenues. A few months after its establishment, the department froze federal grants and issued a costly directive offering employees paid resignation. Musk has also dismantled the US Agency for International Development and seized control of a huge database containing sensitive information on all Americans. These actions have raised serious legal and constitutional concerns.
Tesla plans to open operations in Riyadh, Saudi Arabia, in April 2025. Pop-up stores in Riyadh, Jeddah and Dammam will be operational by 11 April.
In 2018, Tesla decided not to sell its EVs in Saudi Arabia. Falling sales figures as a result of the protests and calls for a boycott led to a change in strategy. Tesla’s sales in Europe are down 42.6% this year, even as demand for EVs increases.
Saudi Arabia appears out of touch with global sentiment in its decision on Tesla. Launching its operations amid protests against the company and Elon Musk is likely to compound the country’s public relations problems. First, the US’s support for Israel has been blamed for the ongoing killing of women and children and the bombardment of Palestine.
Saudi Arabia has been criticised for its intentions to endorse the Abraham Accords and normalise relations with Israel. Hosting Tesla may heighten such criticisms. The accords are agreements aimed at improving relations between Israel and its Arab neighbours.
Second, Musk has called for the elimination of Hamas and likened the situation in Gaza to how the US treated Germany and Japan after World War II. Under the Treaty of Versailles, Germany was made to accept full blame for World War I, subjected to heavy reparations, military reductions and territorial losses. Israel has persistently called for the expulsion of Palestinians from Gaza and continues to annex parts of the West Bank.
Reflecting this ideology, Trump has proposed relocating Palestinians from Gaza to other countries instead of rebuilding homes in the war-torn region, which he referred to as a “demolition site”. He suggested expelling Palestinians to Jordan and Egypt; both countries have rejected this proposal. Trump has also proposed transforming Gaza into a “riviera of the Middle East.”
Whether Tesla will succeed in Saudi Arabia remains uncertain amid heightened political tensions between the US, Israel and grassroots movements in the region. Regardless of the outcome, Tesla’s investment in Saudi Arabia is likely to draw negative attention to the country and its de facto leader, Mohammed bin Salman.
Thembisa Fakude is a senior research fellow at Africa Asia Dialogues and a director at the Mail & Guardian.