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Tesla sets up shop in Morocco for African expansion

Tesla sets up shop in Morocco for African expansion

After months of high-profile political engagement in the U.S., Tesla CEO Elon Musk is shifting gears, refocusing attention on his business ventures. In a strategic move signaling renewed corporate priorities, Tesla has opened its first office in Africa, setting up operations in Casablanca, Morocco, with an initial investment of $2.75 million.

This marks Tesla’s first foray into the African continent. The company plans not only to manufacture and sell its electric vehicles locally but also to roll out energy infrastructure, including charging stations, solar panels, and photovoltaic technologies.

The move is expected to significantly improve Tesla’s control over its value chain in the region—launching, distributing, and servicing vehicles locally rather than remotely from the United States. Previously, potential buyers in Africa hesitated due to limited infrastructure and the lack of a local Tesla presence. That is now set to change.

Morocco’s selection appears strategic. Its geographic location offers Tesla a gateway to broader African markets while also serving as a potential export hub to Europe and the Middle East, aided by favorable trade policies and lower tariffs.

The expansion comes as U.S. political shifts cast uncertainty over EV subsidies. Former President Donald Trump’s push to end federal support for electric vehicles—described as a “big, beautiful bill”—has raised concerns for companies like Tesla that benefited from these incentives. Diversifying into new markets may help offset the impact of such domestic policy changes.

Tesla enters a Moroccan auto market dominated by affordable brands like Renault, Dacia, and Hyundai. While these companies hold the lion’s share due to low maintenance costs, demand for electric mobility—including e-bikes—is growing. Tesla also faces competition from Chinese EV giant BYD, which already has a foothold in the African market.

It remains to be seen whether Tesla will venture into e-bikes, but for now, the focus appears to be on establishing a robust market for its cars. For Moroccan consumers—and Tesla enthusiasts—this development could signal exciting times ahead.

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