Tesla to Enter Saudi Arabia Market Amid Declining Global Sales

Tesla, Inc. TSLA is set to launch its electric vehicles (EVs) in Saudi Arabia, expanding into the Gulf region’s largest economy. The company announced a launch event on April 10, 2025, to showcase its EV lineup. Attendees will also get a firsthand look at autonomous driving with Cybercab and meet Optimus, Tesla’s humanoid robot, as part of its AI and robotics showcase.In Saudi Arabia, about 700,000 new passenger vehicles are sold annually, and SUVs remain the country’s dominant choice. Toyota holds roughly 30% of the market, followed closely by Hyundai/Kia at 25%, while Chinese automakers have quickly gained a 10-15% share.Per a PwC report, Tesla may face challenges gaining traction in the oil-rich nation, where EVs account for just more than 1% of total car sales. The EV market remains small, with only a few thousand units delivered in 2024. However, government initiatives, including tax exemptions, subsidies and investments in charging infrastructure, are expected to drive future growth, making this a strategic entry point for Tesla.TSLA’s expansion into Saudi Arabia comes as the company grapples with various challenges. In 2023, it recorded its first-ever annual sales decline as a public company, posting a 1% drop. The company is also facing mounting competition in China, the world’s largest auto market. BYD, a leading Chinese EV and hybrid car manufacturer, reported $107 billion in annual sales for 2024, surpassing Tesla’s nearly $98 billion. Adding to the pressure, BYD recently introduced an ultra-fast charging system capable of adding 250 miles (402 km) of range in just five minutes, significantly outperforming Tesla’s Superchargers, which take 15 minutes to provide 200 miles of range.Tesla’s struggles extend beyond China. In Europe, its sales dropped by about 40% in February compared to the same month in 2024, per the European Automobile Manufacturers’ Association. In the United States, public perception of Tesla has been affected by Elon Musk’s controversial role in government, where he has overseen widespread public sector layoffs as head of the Department of Government Efficiency.This has led to a decline in demand for Tesla vehicles. Used Tesla prices are plummeting even as overall interest in used EVs rises. Additionally, acts of vandalism against Tesla showrooms, charging stations and vehicles have surged in the United States, prompting the FBI to form a task force to address the issue. Peaceful protests have also erupted at Tesla locations and demonstrators are calling for Musk’s resignation from his government position.TSLA’s Zacks Rank & Key PicksTesla carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are China Yuchai International Limited CYD, Dana Incorporated DAN and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 30 days. The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 30 cents and 50 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dana Incorporated (DAN): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report China Yuchai International Limited (CYD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks