Tesla (TSLA) is set to expand its presence by entering the Saudi Arabian market, with a launch event scheduled for April 10, 2025, at the Bujairi Terrace in Riyadh. This marks a major milestone for the electric vehicle (EV) giant as it enters a market dominated by traditional vehicles.
At the event, Tesla will display its popular EVs, solar energy solutions, and battery technologies. It will also feature demos of its autonomous driving tech with Cybercab and introduce Optimus, its humanoid robot, highlighting its progress in AI and robotics.
The initial response to this announcement has been positive, with interest from potential buyers. This contrasts with the backlash Tesla is facing in parts of the U.S., Canada, and Europe, where its vehicles and facilities have been targeted by vandalism and arson.
TSLA Eyes Saudi Arabia’s EV Market
While Tesla has operations in other Middle Eastern countries, Saudi Arabia offers a promising market. The kingdom boasts annual passenger vehicle sales of nearly 700,000 units, with SUVs being the top choice.
In the past, Saudi Arabia’s focus on oil made it hard for electric vehicles (EVs) to succeed. Now, the government is encouraging EV use by offering tax exemptions, subsidies, and building charging stations. This shift in policies is expected to support TSLA’s growth in the region.
Importantly, Tesla’s move follows Lucid Motors (LCID), which set up a factory in Saudi Arabia with support from the sovereign wealth fund. This shows the kingdom’s interest in EV production and adoption.
Tesla’s Global Push
Similarly, Tesla is making efforts to expand its presence in India, another potential EV market. The company plans to start by selling cars as direct imports and has teamed up with Tata Motors for global component supply.
These initiatives reflect Tesla’s focus on growing globally and efforts to handle challenges from slowing vehicle sales.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 14 Buys, 11 Holds, and 11 Sells assigned in the last three months. At $335.32, the average Tesla price target implies a 16.37% upside potential.
