Tesla Expands Operations into Saudi Arabia Amid Market Challenges

Tesla has launched operations in Saudi Arabia, competing with brands like Lucid and BYD. It has opened sales outlets in Riyadh, Jeddah, and Dammam while facing a global sales drop of 13%. Country manager Naseem Akbarzada highlights the long-term vision, while economist Mohammed Al-Qahtani calls for local manufacturing investment.

Tesla Inc., the US battery electric vehicle manufacturer, has commenced sales operations in Saudi Arabia, positioning itself against established zero-emission competitors like Lucid Motors and China’s BYD in a market primarily featuring petrol-driven SUVs. The automaker has launched outlets in Riyadh, Jeddah, and Dammam, aiming to replicate its success witnessed in neighboring markets like the UAE.

While this launch occurs amidst a global sales downturn for Tesla, which saw a 13% year-on-year reduction to 336,681 units in the first quarter of 2025, it reflects ongoing strategic efforts to expand in lucrative markets. Tesla’s US sales also dipped by 9%, with the company’s share value significantly impacted since the election of President Trump.

Naseem Akbarzada, Tesla’s country manager, expressed optimism about the launch, stating, “Today we are proud to officially launch in the kingdom, marking the start of a long-term presence in the country.” The company’s strategy includes establishing charging stations in the initial three cities, though inter-city recharging options across the desert are still scarce.

Economist Mohammed Al-Qahtani supports Tesla’s market entry but emphasizes the need for more investment, advocating for local manufacturing initiatives: “We do not want a showroom, we want a factory. We want to be part of the production process, not just consumption.”

Tesla’s entry into the Saudi Arabian market marks a significant step as it aims to expand sales in a region traditionally dominated by fossil fuel vehicles. Despite recent global sales declines, the establishment of sales outlets in major cities and plans for charging infrastructure reflect a long-term commitment to the Saudi market. Continued local investment and production capabilities, as urged by economic stakeholders, will be critical for Tesla’s success in the region.

Original Source: www.just-auto.com