Tesla could soon go head-to-head with Chinese robotaxi rival: 'We won't be afraid of such competition'

While Tesla's long-promised robotaxis still have yet to materialize, Reuters recently reported that the electric vehicle maker is facing robust competition from a trio of Chinese competitors in one massive market abroad — the Persian Gulf.

Tesla CEO Elon Musk first hinted at robotaxis — autonomous, driverless EVs functioning much like a standard taxi — no later than 2019. For years, Tesla lessees were not permitted to buy out their Model Y leases, a controversial clause purportedly put in place to support a future "fleet" of Tesla robotaxis.

In 2025, the brand sharply stumbled amid a sales slump and ongoing controversy surrounding Musk's political activities. The first Tesla robotaxis are slated for an imminent launch in Austin in June, but Jalopnik remained skeptical about the rollout date — and even Tesla stock boosters are unconvinced the tiny fleet will emerge on schedule.

As a once-dominant Tesla falters, however, China's EV makers are poised to gain market share with road-ready robotaxis in the Gulf. That's due in part to a "regulatory environment that is embracing the technology and robust demand for ride-hailing services," per Reuters.

The Gulf's aggressive adoption of EVs and robotaxis is good news, reducing pollution at scale for years in large cities. Qatar-based consultant Thaha Muhammed Abdul Kareem talked to Reuters about why China's EV makers are eager to make headway early in the region.

"[The] Middle East and this kind of market, they already have the infrastructure, they have the capital, they have the ambition, which is very important. So that's why everybody is queuing up here," he explained.

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On May 27, EV maker Pony.ai entered into a deal to introduce its robotaxis in the United Arab Emirates, following Baidu and WeRide into the region. Although Tesla is still fighting slowing sales and image woes, the broader EV market doesn't share the automaker's tribulations.

In 2025, more than 25% of cars sold are expected to be electric, as options proliferate and more drivers choose to make their next car an EV. The cost savings associated with EVs escalate sharply when combined with home solar — EnergySage gathers quotes from vetted local installers, allowing consumers to save up to $10,000 on new installations.

As Tesla wavers, China's up-and-coming brands aren't worried about robotaxi market saturation in the Gulf. Baidu general manager Liang Zhang was unflinching when he discussed the Gulf's hot EV market at a recent conference in Abu Dhabi.

"We are actually happy to see positive and active competition, and we won't be afraid of such competition," he remarked.