Tesla does not have any problem selling its cars. However, it still snags large orders, with Arabia Taxi Dubai, the largest taxi fleet in Dubai, recently placing an order for 269 Tesla Model 3s.
Arabia Taxi says this move helps it extend its lead in the taxi industry and reduce its carbon footprint. The purchase of Tesla vehicles is part of Arabia Taxi’s efforts to achieve its environmental goals, aiming to operate 100% “environmentally friendly vehicles” by 2027. 83% of the current fleet already consists of mild-hybrid and PHEV vehicles.
The decision of Arabia Taxi to purchase Tesla Model 3s underscores the growing demand for electric vehicles (EVs) in the commercial space. Orders have come from ride-hailing companies and car rental services looking to cut operating costs and reduce their carbon footprint. Hertz, another fleet customer, placed a multibillion-dollar order with Tesla and has benefited from dramatically decreased operating costs while offering customers.
Arabia Taxi’s move towards electrification is just one of the many orders in the EV industry in recent years. Other notable fleet orders include retail giants such as Walmart and Amazon. Both of them are currently working on switching to electric vehicles.
However, with sizable investments from legacy makers like Ford and General Motors and competition from startups like Rivian, Tesla may soon start to feel the heat.
