Tesla has suspended new orders for its Model S and Model X vehicles in China. The company has removed the order options for these two models from its Chinese website and WeChat mini program. While Tesla has not provided an official statement regarding the decision, the move comes amid escalating trade tensions between the United States and China.
In recent weeks, economic disputes between the two countries have intensified. The Chinese government recently raised tariffs on U.S. imports to 125% in response to the U.S. increasing duties on Chinese goods to 145%. These higher tariffs significantly impact the price of U.S.-made Tesla models in China, making them considerably more expensive than locally produced electric vehicles.
Based in Texas, Tesla is one of the least affected automakers by these tariffs, as most of its U.S. market production remains domestic. In China, however, the company manufactures Model 3 and Model Y vehicles at its Shanghai plant, supplying both the domestic market and exports to regions such as Europe. As a result, the majority of Tesla’s sales in China come from locally produced models.
As of 2024, China imported 1,553 Model X units and 311 Model S units, making up less than 0.5% of Tesla’s total global deliveries, which exceeded 657,000 vehicles last year.
Furthermore, Tesla faces growing competition in the Chinese market. Domestic automakers, particularly BYD, are gaining market share by offering competitive pricing and advanced technologies, putting pressure on Tesla’s sales. In the first quarter of the year, deliveries of Tesla’s premium vehicle segment—which includes the Model S, Model X, and Cybertruck—declined by 25% globally. This downturn is largely attributed to a lack of significant upgrades to these models and consumer backlash over CEO Elon Musk’s political stance.
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