Tesla receives massive fleet order from the UAE

Tesla received a large order for Model 3s from an Emirati taxi company, Arabia Taxi Dubai, helping the company to cut its carbon footprint.

Tesla’s retail consumer pressure is undeniably large. Still, the automaker has also grown in popularity in the commercial space, especially from customers looking to cut operating costs while reducing their carbon footprints. Predominantly, these orders have been coming from ride-hailing companies and car rental services. Now, a Dubai-based taxi company is also looking to capitalize on the cut-cutting opportunity.

According to the announcement from Arabia Taxi Dubai, it will buy 269 Tesla Model 3s to become part of its taxi fleet in the United Arab Emirates. Currently, Arabia Taxi advertises itself as the largest taxi fleet in the country’s Capital, and one of the largest in the country. With this new purchase, it looks to double down on that lead.

Niether Arabia Taxi nor its CEO have publically announced the value of the deal they have inked with Tesla.

Besides growing the business, the company’s owner, Sheikh Majid bin Hamad Al Qasimi, hopes to achieve his environmental goals for the company faster than ever. Currently, Arabia Taxi aims to operate 100% “environmentally friendly vehicles” by 2027, a segment of vehicles which already account for 83% of the fleet. It should be noted that this includes mild-hybrid and PHEV vehicles. The Sheikh hopes to achieve 100% electrification soon after, potentially paired with hydrogen-fueled vehicles.

Today’s taxi fleet order is one ofcountless fleet orders that Tesla has received, but it should be no surprise that the American automaker’s EV offerings are attracting sizable commercial interest. According to another fleet customer, Hertz, who has placed a multibillion-dollar order with Tesla, it has benefitted tremendously from not only dramatically decreased operating costs but also from the interest of consumers who love getting the chance to use and interact with Tesla vehicles in particular.

Tesla isn’t the only car maker that is pouncing on the commercial demand for EVs. Other notable fleet orders even include some of the largest retail giants on the planet. Both Walmart and Amazon are currently working to switch to electric vehicles rapidly, and are doing so by working with countless manufacturers, including startups like Canoo and Rivian and also more prominent players like Ford and General Motors.

With Tesla poised to increase its number of offerings very shortly, one of the primary customers the leading EV seller will be looking to address is commercial fleet buyers, most notably by producing electric vans and buses. However, with such sizable investments from legacy makers, Tesla will need to work quickly to introduce its competitor to the market.

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x