Elon Musk directs Tesla to enter the Saudi Arabian market amidst plummeting sales in Europe and the US. Initiatives include pop-up stores with plans for permanent showrooms. This pivot follows years of avoiding Saudi Arabia following a fallout with the Public Investment Fund. The urgency arises from a 70 percent decline in sales and rising trade-in volumes for Teslas in the US.
In response to declining sales in Europe and the United States, Tesla’s CEO Elon Musk is taking strategic steps to penetrate the Saudi Arabian market. The company plans to initiate this expansion through pop-up stores and customer engagement events, with the intention to eventually establish permanent showrooms in major cities such as Riyadh and Jeddah.
Tesla’s decision to explore the Saudi market comes as sales have drastically decreased by approximately 70 percent in pivotal regions, including Germany and the United States. Reports indicate that the volume of trade-ins for Teslas in America has tripled compared to the previous year, highlighting significant market challenges.
This move marks a significant shift for Tesla, as it comes after a contentious relationship between Musk and Saudi Arabia’s Public Investment Fund (PIF) following Musk’s failed attempt to take Tesla private in 2018. That effort led to legal repercussions and the PIF subsequently supporting Tesla competitor Lucid Motors.
Previously, Tesla refrained from entering the Saudi market due to its preference for markets with greater demand for electric vehicles. However, the urgency to sustain production and sales has prompted a reevaluation of this stance, leading to this unexpected initiative in Saudi Arabia.
Tesla’s strategic expansion into Saudi Arabia represents a significant pivot aimed at recuperating losses from declining sales in established markets. While this move is surprising due to previous tensions with Saudi investment interests, it underscores the company’s urgent need to explore new opportunities for growth amid challenging market conditions.
Original Source: www.news.com.au
