About the Companies

Saudi Aramco is one of the largest global energy and chemical companies, primarily focused on oil, and has been on the market for over 90 years. Headquartered in Dhahran, Saudi Arabia, its primary owner is the Kingdom itself. The company went public in 2019, selling 3 billion shares, which amounted to more than 25 billion USD. On the other hand, there is the younger Chinese company BYD, founded in 1994. It offers zero-emission solutions for automotive transport, but also provides solutions for railways, renewable energy, and electronics. According to Companiesmarketcap.com, Saudi Aramco[1] ranks among the top ten most valuable publicly listed companies, with a valuation exceeding 1.65 trillion USD, and holds the number one spot in the energy sector. BYD ranks among the top three in the category of the largest automakers and electric vehicle manufacturers, with a market valuation of 146 billion USD.[2]

New Energy Vehicle Technology on the Horizon

The two companies have joined forces to bring forward technologies focused on efficiency and environmental performance, particularly in the automotive sector. As part of their effort to create and develop new energy vehicle (NEV) technologies, Aramco—through its subsidiary Saudi Aramco Technologies Company—will contribute its expertise in energy solutions, including low-carbon fuels, while BYD will rely on its cutting-edge capabilities in electrification. The giants expressed enthusiasm about the collaboration, acknowledging the complexity of transitioning to green energy, and in an official statement from Saudi Aramco, both companies emphasized the need for such partnerships.[3]

Mixed Stock Market Results

Strategic moves by both companies may also impact their stock performance. The notional winner in terms of performance to date has been BYD, which has been in the green on the Shenzhen Stock Exchange from both a long-term and short-term perspective. Since the start of the year alone, its shares have gained 37.5% to CNY372.94 (USD51, as of 23 April 2025). Saudi Aramco, on the other hand, has seen its stock rise just over 3% on the Tadawul exchange over the past five years, but it has been down 8% year-to-date, with its shares valued at 25.60 SAR (6.82 USD) as of the same date.*

Stock Price Development of BYD Over the Last 5 Years (Source: Google Finance)*

Stock Price Development of Saudi Aramco Over the Last 5 Years (Source: Google Finance)*

Sustainable Saudi Arabia

Saudi Arabia is also leaning towards the idea of a green future and aims to reduce its dependency on the oil industry. Its Vision 2030 initiative seeks to increase the number of electric vehicles to 30% by the end of the decade. As reported by Reuters, this current level is about 1%. To strengthen its position in the EV sector, the kingdom is focusing on the supply chain and billions of dollars in investments into automakers. For instance, it has invested 3.4 billion USD in Lucid Motors, where the majority owner is the Public Investment Fund—the sovereign wealth fund of Saudi Arabia. The country has also introduced its own brand, Ceer, which will start delivering cars within the Gulf region from next year. The Saudi market is not unfamiliar to BYD, which has been operating there since last year. Due to the low concentration of electric vehicles on the roads, infrastructure is currently a challenge. There are just over 100 charging stations throughout the country, and along the longest 900-kilometer stretch between Mecca and Riyadh, there isn't a single station—something that should change thanks to this initiative.[4] In addition to economic diversification, Vision 2030 aims to strengthen the position of women and bring about social change.[5] [1]

Tesla Enters the Market

American manufacturer Tesla has also decided to take advantage of Saudi Arabia's potential, opening its first showrooms in the country on April 10, 2025. The company expects to replicate the success it had in neighboring United Arab Emirates. According to a survey by PwC, around 40% of Saudi consumers are considering purchasing an electric vehicle in the next three years, which could be a good sign for Tesla. Additionally, relatively positive forecasts from S&P Global Mobility project sales of 10,000 to 15,000 vehicles in the first two years. However, Tesla, like in other markets, will have to contend with strong competition, such as the aforementioned BYD.[6] [2]

Sales Slump

Tesla's launch in the kingdom comes at a time when the company is struggling globally, with its sales declining the most in its history. In the first quarter of 2025, it sold 336,681 vehicles, marking a 13% year-on-year drop. This decline can be attributed to factors such as cheaper competitor models and the global perception of CEO Elon Musk, whose controversial behavior is not doing the brand any favors. For instance, in Europe, despite overall sales growth on the continent, demand for Tesla vehicles dropped by 49%, according to data from the European Automobile Manufacturers' Association.[7] [8] Tesla is also suffering on the NASDAQ, where it has lost more than 40% of its value since the beginning of the year. As of the same date, its shares were priced at 237.97 USD, although they have increased by a triple-digit percentage over the last five years.*

Tesla Stock Price Development Over the Last 5 Years (Source: Google Finance)*

Conclusion

The cooperation highlights the development of solutions that bridge the gap between traditional energy companies and those in the "green" sector. Along with Saudi Arabia's broader efforts, it demonstrates a strategic shift in a country that has primarily benefited from black gold. For investors, this may present an interesting opportunity in a developing market, especially considering the lower stock prices of some companies. [3]

*Past performance is not a guarantee of future results.

[1, 2, 3] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not a guarantee of future performance. They involve risks and uncertainties that are difficult to predict. Results may differ significantly from those expressed or implied in any forward-looking statements.

[1] https://companiesmarketcap.com/energy/largest-companies-by-market-cap/

[2] https://companiesmarketcap.com/byd/marketcap/

[3] https://www.aramco.com/en/news-media/news/2025/aramco-and-byd-collaborate-on-new-energy-vehicle-technologies

[4] https://www.investing.com/news/stock-market-news/cybertrucks-in-the-desert-tesla-launches-in-saudi-arabia-3980292

[5] https://www.arabnews.com/uzol/2593730/podnikanie-ekonomika

[6] https://www.cnbc.com/2025/04/10/tesla-launches-sales-in-saudi-arabia-amid-chinese-competition.html

[7] https://edition.cnn.com/2025/04/02/business/tesla-sales/index.html

[8] https://apnews.com/article/tesla-sales-recall-trump-byd-b6f5da15be491d16e3020598e3ddf861