Elon Musk is pushing Tesla into Saudi Arabia to counter falling sales in Europe and the US. The company will launch pop-up stores and eventually conventional showrooms. This decision comes after Tesla experienced a significant sales decline of around 70% in major markets, alongside past tensions with the Saudi Public Investment Fund. The move highlights a necessary shift to discover new market opportunities for sustaining sales.
Tesla, led by CEO Elon Musk, is venturing into the Saudi Arabian market, aiming to compensate for declining sales in Europe and the US. Initial steps will include establishing pop-up stores and customer engagement events, followed by the development of traditional showrooms in key cities like Riyadh and Jeddah.
The need for new markets has intensified as Tesla faces a significant sales downturn, with reports indicating a drop of roughly 70% in major regions, including Germany and the United States. In the US specifically, there has been a sharp rise in trade-ins of Teslas, tripling previous volumes for this time of year.
Musk’s willingness to enter Saudi Arabia is notable, especially considering past tensions with the Saudi Public Investment Fund (PIF). In 2018, Musk tweeted about potentially taking Tesla private, claiming to have “funding secured”; this caused a fallout that included the PIF backing Tesla’s rival, Lucid Motors. The company had previously chosen not to sell in Saudi Arabia, shifting focus to other regions instead.
The current sales crisis has compelled Tesla to reconsider its strategy and seek new revenue avenues to sustain its manufacturing and sales operations globally, particularly as competition within the electric vehicle market heats up.
Tesla’s move into Saudi Arabia marks a strategic pivot in response to steep sales declines in other markets. With initial initiatives focused on pop-up stores, the company aims to establish its presence despite past conflicts with the Saudi PIF. This shift emphasizes the urgency for new revenue opportunities amid rising competition and changing market dynamics.
Original Source: www.news.com.au
