Tesla has announced its upcoming launch in Saudi Arabia, scheduled for April 10. The event will take place in Riyadh, as stated on the company’s official website. This launch is significant as it occurs amid a decline in Tesla’s electric vehicle (EV) sales in both Europe and China.

In recent months, Tesla’s sales in Europe have dropped by 42.6 percent compared to last year, according to data from the European Automobile Manufacturers Association (ACEA). Additionally, sales of Tesla’s China-made electric vehicles fell by 49.2 percent annually in February, totaling 30 688 cars, marking the lowest sales figures since August 2022. The company faces intense competition from local rivals like BYD, which reported a 29 percent increase in sales, delivering 4.27 million cars, including both fully electric and hybrid models.

Tesla’s entry into the Saudi market is timely, as the Kingdom aims to transition 30 percent of all vehicles in Riyadh to electric by 2030. This initiative is part of a broader strategy to reduce emissions in the capital city by 50 percent. The Kingdom is also working to establish a domestic EV manufacturing sector, which will enhance in-country value and attract foreign investment. Notable players in this sector include CEER, Foxconn, and Lucid Motors, with Saudi Arabia’s sovereign wealth fund being a majority investor in Lucid Group.

Furthermore, Tesla has been expanding its presence in the region, having offered its vehicles in the UAE since 2017 and recently signing a lease for its first showroom in Mumbai, India. The company has not yet specified when its products will be available for purchase in Saudi Arabia, but the launch is expected to align with the Kingdom’s efforts to diversify its economy away from oil.