You won’t find cheap EVs and hybrids from China’s BYD on American roads. But you will find them on the streets of Riyadh in Saudi Arabia. Now, with Tesla looking to heal its wounded bottom line by expanding into other markets, you’ll also find Tesla Cybertrucks and Model Ys on the road in the oil-rich nation. It could be a stage-set for a Tesla vs BYD showdown. 

Tesla launched its operations in Saudi Arabia, but BYD beat them to the punch

The automotive world doesn’t typically conjure images of Saudi Arabia when they think of EVs. No, no, they think of vast stockpiles of oil drilled straight from the Earth and prepped for use in the gas-powered cars of yesteryear. However, they certainly don’t think of Riyadh when they ponder electric cars. That is, until now.

Saudi Arabia claims it wants to reach 30% EV adoption by decade’s end. Granted, it’s a lofty goal. Especially for an oil-rich country like the Kingdom. To pull it off, Saudi Arabia has opened itself up to EVs from all over the world. It may have also set the stage for a Tesla vs BYD proxy war.

Breaking into the market, Tesla launched its Saudi operations by showing off the oft-reviled Cybertruck and the new, updated Model Y in a Riyadh plaza. Some spectators were more interested in getting a glimpse of the brand’s outspoken head, Elon Musk. However, the CEO didn’t make a personal appearance.

“I’m honestly very disappointed I cannot see him,” Tesla fan Mohammed Usama told Reuters. “I was very close to the stage, but unfortunately, he didn’t come.” Musk or not, Usama said he was “in love” with the Cybertruck in particular. But is fandom like his enough for Tesla to gain a foothold in a market where BYD already operates?

BYD already has six models available to Saudi buyers, more than the entire lineup of Tesla EVs here in the United States. Four of those are fully electric. What’s more, the BYD Han, the brand’s premium offering in the Saudi market, starts at around 200,000 SAR ($53,293). However, at the lower end, the BYD Atto 3 brings EV pricing down to around 111,000 SAR ($29,580). Tesla may have a difficult time contending with cheaper competition from BYD.

The news follows Tesla’s decision to stop importing the American-made Model S and Model X to China. The ongoing trade war between the United States and the People’s Republic has made importation just about inconceivable due to sky-high tariff structures.