Tesla is expanding to Saudi Arabia, facing challenges in global sales, but government support is expected to help

From Nasdaq: 2025-03-27 07:51:00

Tesla, Inc. is launching its electric vehicles in Saudi Arabia on April 10, 2025, targeting the country’s annual sales of 700,000 new passenger vehicles. Despite challenges in the oil-rich nation where EVs account for just over 1% of total car sales, government initiatives are expected to drive future growth.

In the midst of its Saudi Arabia expansion, Tesla faces competition from BYD in China, where the latter reported higher annual sales in 2024. Tesla’s struggles extend to Europe and the United States, where sales have dropped, and public perception has been affected by Elon Musk’s controversial government role.

Despite challenges, Tesla carries a Zacks Rank #3 (Hold). Better-ranked stocks in the auto space include China Yuchai International Limited, Dana Incorporated, and Strattec Security Corporation, each sporting a Zacks Rank #1 (Strong Buy) with positive growth estimates for 2025. Interested investors can access Zacks’ portfolio services for only $1 for 30 days.



Read more at Nasdaq: Tesla to Enter Saudi Arabia Market Amid Declining Global Sales