US electric car maker Tesla has said it will begin operations in Saudi Arabia next month, with the launch scheduled for April 10 in Riyadh.
“You and your family are warmly invited to our launch event at the Bujairi Terrace on April 10,” Tesla said in a post on its website.
“Explore our global bestselling line-up and step into a world powered by solar energy, sustained by batteries, and driven by electric vehicles. Experience the future of autonomous driving with Cybercab, and meet Optimus, our humanoid robot, as we showcase what's next in AI and robotics,” the company said.
Tesla's entry into Saudi Arabia comes at a tumultuous time for the company.
Investors have been dumping its stock since the beginning of the year as demand for its electric cars declines amid protests over chief executive Elon Musk's far-right political comments and the arrival of cheaper alternatives on the market. The company's shares have lost about a fifth of their value so far in 2025.
The electric vehicle maker's sales in Europe and the UK fell by 45.2 per cent year-on-year in January, according to the European Automobile Manufacturers' Association (Acea).
Tesla's drop bucked a wider trend in Europe, where new battery electric car sales rose by 34 per cent in January and captured a 15 per cent market share, according to Acea.
The Gulf is regarded as a burgeoning potential market for the car maker, though its vehicles have been widely available in the UAE since 2017, while Qatar also has a dealership.
Saudi Arabia, the Arab world's largest economy, plans to transition 30 per cent of all vehicles in Riyadh to electric by 2030, as part of a broader strategy to halve emissions in the capital city. Currently, EVs account for just over 1 per cent of overall car sales in the kingdom.
Saudi Arabia has been investing billions of dollars to transform itself into an EV manufacturing centre as it seeks to catch up with the world's leading electric car makers, the US and China, while weaning itself away from oil exports. The Public Investment Fund, the kingdom's sovereign wealth fund, is the majority investor in Lucid Motors.
Tesla also plans to begin business in India this year, with showrooms expected to open in New Delhi and Mumbai as early as April.
The company's expansion into new geographies comes as competition heats up with China's BYD.
BYD generated 777 billion yuan ($107.1 billion) in revenue for 2024, reporting a 29 per cent year-over-year increase in sales with 4.27 million vehicles delivered, including fully electric and hybrid models.
Meanwhile, Tesla posted $97.7 billion in revenue for last year and delivered 1.79 million battery-electric vehicles. The company's annual deliveries declined by 1.1 per cent – its first drop in yearly shipments.
Global sales of electric passenger vehicles are expected to increase by nearly a third this year, according to a study from S&P Global released in December.
Sales of the most popular type of EVs are projected to hit 15.1 million in 2025, which would be about 30 per cent up on last year's estimated 11.6 million, the New York-based ratings agency's mobility unit said.
