Tesla is rapidly expanding its presence across the Gulf region, driven by government initiatives and surging consumer demand, reshaping the local EV landscape despite infrastructural and climatic challenges.
Tesla’s burgeoning presence in the Middle East, particularly the Gulf region, is having a strong impact on the electric vehicle (EV) landscape. Known for its cutting-edge technology and sleek designs, Tesla is capturing growing interest from consumers in Saudi Arabia, the United Arab Emirates (UAE), and broader Gulf countries as these markets embrace electric mobility more earnestly.
Across the Middle East, the EV market is experiencing rapid growth. Industry analyses estimate the regional EV market will nearly triple in value, from around $2.7 billion in 2023 to over $7.6 billion by 2028. This surge is propelled by ambitious government initiatives such as Saudi Arabia’s Vision 2030 and the UAE’s Net Zero by 2050 strategy. These frameworks are driving the expansion of EV infrastructure, implementing purchase incentives, and encouraging fleet electrification to meet environmental targets. Tesla is capitalising on this momentum by expanding its footprint with official showrooms, service centres, and a growing Supercharger network in key Gulf cities.
In the UAE, Tesla has already established a strong presence, operating flagship stores and pop-up locations in Dubai and Sharjah. It offers its full model range—Model 3, Model Y, Model S, and Model X—alongside solar energy products like solar panels and the Tesla Powerwall. Dubai, in particular, is rapidly developing its EV charging infrastructure through public-private partnerships, boosting consumer confidence in EV adoption for both urban and long-distance travel.
Tesla’s entry into Saudi Arabia marks a significant milestone. On 10 April 2025, Tesla opened its first showroom and service centre in Riyadh. Despite challenges posed by the country’s desert climate—such as extreme heat affecting battery performance—and a sparse charging network of fewer than 110 stations nationwide, the Saudi government’s commitment to invest approximately $39 billion in EV infrastructure signals a strong future for the market. The aim is to raise EV adoption to 30% of all vehicles by 2030, coinciding with the ambitions of Vision 2030. Tesla plans to augment its presence with pop-up stores in Jeddah and Dammam, and the rollout of additional Supercharger stations is underway, indicating bolstered support for drivers and expanding range confidence.
However, Tesla faces stiff competition and unique market dynamics in Saudi Arabia. Chinese EV manufacturer BYD has already gained ground, particularly with hybrid vehicles that alleviate range anxiety amid limited public chargers. Moreover, Saudi Aramco recently signed a joint development agreement with BYD to further new energy vehicle technologies, highlighting intensifying competition in the kingdom’s EV sector. Nevertheless, Tesla’s entry reflects improved relations between CEO Elon Musk and Saudi stakeholders after prior tensions, especially given Musk’s growing political clout in the U.S. under the Trump administration.
For Gulf consumers eager to join the electric revolution without waiting for new Tesla models or paying premium prices, options now exist to access high-quality used Teslas imported primarily from Japan. The global used car platform BE FORWARD offers a broad range of certified Teslas with verified histories, modern features, and prices significantly lower than new vehicles. Models available include the highly efficient Model 3, starting from around $17,600 for recent 2021 units, and premium options such as the Model S, Model X, and Model Y. BE FORWARD’s international shipping capabilities ensure smooth delivery and customs clearance across the Gulf states, backed by detailed vehicle listings to provide buyers with confidence.
Tesla’s global trajectory remains strong despite some recent sales challenges and intensifying industry competition. For example, the company experienced a 13% sales decline in the first quarter of 2025 amid political controversies and a maturing product lineup. Yet, in markets like Turkey, Tesla’s sales surged dramatically, making it the second best-selling car brand in August 2025, driven by tax incentives and strategic supply chain management. Globally, Tesla holds a commanding 17% share of the EV market, with its Model 3 and Model Y continuing to lead sales charts. However, it now faces growing competition from diversified automakers offering more affordable alternatives.
Tesla’s expanding presence in the Middle East illustrates the region’s accelerating shift towards electric vehicles, supported by government policies and growing consumer demand. While infrastructure and climatic challenges persist, strategic partnerships, product availability through used vehicle platforms, and ongoing investment in charging stations promise to make Teslas—and electric mobility more broadly—a feasible and attractive option for Gulf drivers in the near future.
