You won’t come across affordable electric vehicles (EVs) and hybrid models from Chinese manufacturer BYD on American roadways. However, they can be spotted cruising through the streets of Riyadh in Saudi Arabia. Currently, with
Tesla
aiming to rejuvenate its struggling finances through expansion into new markets, you’ll soon see Tesla Cybertrucks and Model Ys cruising on the roads of this oil-rich country. This scenario sets the stage for a potential face-off between Tesla and BYD.
Tesla entered the market in Saudi Arabia, however, BYD got there first.
When people think about the automotive industry, Saudi Arabia isn’t usually the first place that comes to mind.
EVs
No, no, they imagine huge reserves of oil extracted directly from the ground and prepared for use in gasoline-driven vehicles from days gone by. But they definitely do not associate Riyadh with electric cars. At least, not until recently.
Saudi Arabia aims to achieve 30% electric vehicle (EV) adoption by the end of the decade. This target is quite ambitious, particularly for a nation abundant in oil such as the Kingdom. In order to accomplish this, Saudi Arabia has embraced EV imports from various global sources. Consequently, this move could potentially lead to a competitive showdown between Tesla and BYD.
Entering the market, Tesla debuted its operations in Saudi Arabia by unveiling the frequently criticized Cybertruck as well as the
new, updated Model Y
In a Riyadh shopping center, some viewers were more eager to catch sight of the company’s vocal leader, Elon Musk. Nevertheless, he did not show up personally.
“I am genuinely quite disappointed that I won’t be able to see him,” said Tesla enthusiast Mohammed Usama.
Reuters
“I was nearly at the stage, yet regrettably, he did not appear.” Regardless of whether it’s Musk or not, Usama mentioned he had “fallen in love” specifically with the Cybertruck. However, can this level of admiration from fans like him be sufficient for Tesla to establish a presence in a competitive marketplace?
BYD
already operates?
BYD already offers six models for sale in Saudi Arabia, which surpasses Tesla’s complete range of electric vehicles in this region. Among these, four are all-electric options. The BYD Han, positioned as the top-tier model within the Saudi market, begins at approximately 200,000 SAR ($53,293). On the less expensive side, the BYD Atto 3 makes entry-level electric cars accessible starting around 111,000 SAR ($29,580). This could pose challenges for Tesla when competing against more affordable alternatives offered by BYD.
The news follows Tesla’s decision to stop importing the American-made
Models S and X heading to China
The continuous trade conflict between the United States and the People’s Republic has rendered imports nearly impossible because of extremely high tariff rates.