Tesla Expands to Saudi Arabia Amid Kingdom's Sustainability Push
Tesla, the US-based electric vehicle (EV) manufacturer, is set to launch its operations in Saudi Arabia on April 10. The company's entry into the Kingdom aligns with Saudi Arabia's broader strategy to reduce its dependence on crude revenues and achieve net-zero emissions by 2060.
The launch event, scheduled to take place at the Bujairi Terrace in Riyadh, will showcase Tesla's global bestselling lineup, including its autonomous driving technology and humanoid robot, Optimus.
Saudi Arabia's EV Ambitions
The Kingdom has been actively promoting the EV industry to achieve economic diversification and sustainability. The Saudi government's Public Investment Fund is the majority investor in Lucid Group, a startup competing with Tesla in the global market.
Lucid Motors has already established a manufacturing plant in Saudi Arabia, with an initial capacity to produce 5,000 electric cars per year. The company has also joined the Kingdom's "Made in Saudi" program, which grants it the right to use the "Saudi Made" label on its products.
Homegrown EV Brand
Saudi Arabia is also pushing ahead with its own homegrown electric vehicle brand, Ceer. Announced in 2022 by Crown Prince Mohammed bin Salman, Ceer is expected to contribute significantly to the Kingdom's GDP by 2034.
The company has already signed 11 deals worth SR5.5 billion ahead of its model launch in 2026.
Tesla's Expansion Amid Challenges
Tesla's entry into the Saudi Arabian market comes at a tumultuous time for the company, which is facing declining sales in Europe and the US. However, the Kingdom's growing demand for EVs and its commitment to sustainability make it an attractive market for Tesla.
The company's launch event in Riyadh is expected to attract significant attention, with many industry experts and enthusiasts eager to see how Tesla will contribute to Saudi Arabia's sustainable journey.
Source: https://www.arabnews.com/node/2594875/business-economy