Tesla Expands to Saudi Arabia Amid Declining Global Sales
Electric vehicle giant Tesla is set to launch in Saudi Arabia, marking its entry into the oil-rich kingdom at a time when its global sales are struggling.
The company announced that it will hold a launch event in Saudi Arabia on April 10, where attendees will get a firsthand look at Tesla’s EV lineup. The event will also feature the Cybercab, showcasing autonomous driving technology, and Optimus, Tesla’s humanoid robot, as part of its push into artificial intelligence and robotics.
Despite the expansion, Tesla may face challenges in gaining traction in Saudi Arabia, where EVs currently make up just over 1% of total car sales, according to a PwC report published in September 2024.
The move comes as Tesla battles declining sales and growing competition. Last year, the company recorded its first-ever annual drop in sales, falling by 1%. In China, Tesla has lost ground to rival BYD, which reported $107 billion in sales for 2024, surpassing Tesla’s nearly $98 billion. BYD has also introduced an ultra-fast charging system capable of adding 250 miles of range in just five minutes, far outpacing Tesla’s Supercharger technology.
In Europe, Tesla’s sales dropped by about 40% in February compared to the same period last year, while in the U.S., public perception of CEO Elon Musk’s government role has contributed to declining demand. As the head of the Department of Government Efficiency, Musk’s controversial policy decisions—including mass layoffs—have led to protests, vandalism of Tesla showrooms and charging stations, and a significant drop in used Tesla prices.
The negative sentiment surrounding Tesla has impacted investor confidence, with the company’s stock plunging 40% since reaching an all-time high in December.
Despite these challenges, Tesla’s expansion into Saudi Arabia signals its continued push to capture new markets as it seeks to stabilize its global position in the highly competitive EV industry.
