According to EqualOcean, Tesla declared that a press conference will be held on April 10, from 8:00 PM to 11:00 PM local time in Riyadh, the capital of Saudi Arabia, marking its official foray into the Gulf region's largest automotive market. Although Tesla has been operating in several Middle Eastern countries, it had not previously established a branch in Saudi Arabia.
According to the announcement on Tesla's official website, the event will showcase its full range of electric vehicles and solar products, and will feature the Middle Eastern debut of its self-driving taxi, Cybercab, and humanoid robot, Optimus. While the exact launch dates for Cybercab and Optimus have not been announced, their reveal has sparked lively discussions among Saudi consumers, with local netizens expressing anticipation on Tesla's official X account.
Founded in 2003, Tesla is a global leader in the electric vehicle and clean energy sectors. In 2023, Tesla delivered over 1.8 million vehicles worldwide, though it has faced challenges in the European market, where both sales and market share have declined this year. Recently, Tesla's CEO Elon Musk's controversial actions and statements have led to significant drops in sales in Western markets, and the brand has frequently been targeted by protestors, exacerbating a trust crisis that has also affected its stock price. Analysts believe that the expansion into the Middle Eastern market may open up a new growth avenue for Tesla.
Saudi Arabia's “Vision 2030” aims to reduce the country's reliance on oil by prioritizing green transportation. The Saudi government has actively launched initiatives to promote green mobility, investing heavily in electric public transportation systems while encouraging consumers to transition to electric vehicles (EVs) or vehicles powered by natural gas and hydrogen. With billions of dollars invested in infrastructure and advanced technology research to localize the electric vehicle supply chain, the Saudi government hopes to achieve 30% automotive electrification in Riyadh by 2030. With continued implementation of tax and subsidy measures, Saudi Arabia is increasingly seen by electric vehicle companies as a blue ocean for growth.
Mordor Intelligence forecasts that the Saudi electric vehicle market will surge from USD 560 million in 2024 to USD 2.2 billion in 2029, at a compound annual growth rate of 24.5%. PwC's global head of electric mobility, Haiko Cets, revealed that by 2030, it is expected that 64% of new vehicle sales in Saudi Arabia will be battery electric vehicles, reflecting strong interest from both international and domestic brands in the rapidly growing Saudi market. He emphasized that as more models and brands enter the Saudi market, the price of electric vehicles is expected to drop further, thereby driving broader market adoption.
Image Source: Tesla
