A 32-year-old Crace man has been arrested for allegedly stealing a car, armed with a firearm, from a Watson home on Monday.

At 8.30am police received a report that a man wearing dark clothing and with his face covered had threatened a woman with a firearm, demanding the keys to a Tesla parked at the Watson house.

The victim was able to provide location updates for the car, but an initial attempt to intercept the vehicle in Downer was unsuccessful.

Police then engaged in a short pursuit, which was abandoned due to safety concerns for other road users.

Officers then established a cordon in Ainslie, where the man was arrested and the vehicle recovered at 9.05am.

The man will appear in court on Tuesday, charged with aggravated robbery, driving a stolen motor vehicle, furious driving and failing to stop for police.

Any witnesses, or anyone with dash-cam footage should to call 1800 333000.