Tesla has officially opened its first showroom and service center in Saudi Arabia between the US and China tariff war. Tesla has initially launched Model 3, Model Y and Cybertruck in Saudi Arabia. Apart from this, the company is preparing to open the store in Jeddah and Dammam. The decision of Alan Musk -owned Tesla has come as its global expansion, where he is exploring the possibilities of compulsory in other countries of the world between Tariff War from China.
The sale of electric cars in Saudi Arabia is very low, but the demand is increasing. Right now the market here is in the initial phase. According to a report by the consulting firm PWC, in 2024 all the car sales were only 1%. The government aims to take out more than 3 lakh cars on the roads of the country by 2030. For this, the government is investing in infrastructure. Tesla’s entry into the country is favorable to the government’s vision. Despite this, the road here will not be so easy for the American company. There are some challenges in front of Tesla, which will have to be faced.
Electric car in a country with oil reserves
Saudi Arabia is a major producer and exporter of crude oil in the world and has a huge reserves of oil. Saudi Arabia holds about 17% of the world’s petroleum reserves and is also the largest exporter of petroleum. In such a situation, in the country with a huge stores of petrol, where people do not want to buy electric cars due to petrol prices, there will be a challenge for the people to emerge as an option like Tesla.
Heat and infrastructure
There is a severe heat situation in Saudi Arabia. Because of this, there are challenges in front of electric car manufacturers. Because the scorching heat can affect the performance of EV battery to a great extent. Apart from this, Saudi Arabia’s limited charging infrastructure can also become a challenge for Tesla. There is no charging station for miles on the long desert roads here.
Will have to compete with Chinese company
Apart from Tesla, Chinese EV manufacturer BYD and another American EV manufacturing lousid motors are already present in the Saudi market. Apart from this, the Saudi government is also developing the joint venture Saudi -made EV brand seer motors in collaboration with Taiwanese maker Foxconn. This means that Tesla will have to face the challenge of competing with many big EV manufacturers in Saudi’s small electric market.