Question

new ways to improve long term profitability for tesla to operate in KSA( Saudi) market

Answer 1

There are multiple opportunities for Tesla for long term profitability

1. Cabs are a big business in Saudi (like most countries). By installing a grid of free charging stations (like in the US) Tesla can enable cab owners can virtually operate at Zero running cost. Saudi has good sunlight throughout the year so the electricity for the cars can be generated at the charging stations by solar panels.

2. Driverless cars can revolutionize cabs in Saudi which has huge stretches of Highway which can easily be handled by an AI. (unlike city traffic which has too much variability for AI to effectively negotiate)

3. Tesla can make more Premium Cars, like the Roadster they started with to target the extremely rich customers in Saudi. This can help them become profitable with lower volumes unlike the Model 3 which is Priced very cometitively

4. Tesla is the Safest car (The Model 3 achieved a perfect 5-star rating in every category on the National Highway Traffic Safety Administration's crash tests). This is huge selling point to the richer customers in Saudi