Tesla has temporarily halted new orders for its Model S and Model X vehicles on its official website in the Chinese market. This move comes amidst escalating tensions between the world’s two largest economies in the ongoing trade war.
Both the Tesla Model S and Model X are manufactured in the US and imported into China. New orders for these models are also unavailable on Tesla’s WeChat account in China.
Tesla has not released any statements regarding this decision. However, the escalating trade war and increased tariffs between the US and China are believed to be the main reasons for this move.
On April 11, 2025, the Chinese government raised import tariffs on US goods to 125%. This came as a response to President Trump’s decision to increase tariffs on Chinese goods to 145%.
The higher US tariffs have significantly increased retail prices in China, including electric vehicles. With the new tax rates, the Tesla Model S and Model X have become more expensive compared to domestically produced electric cars.
Among automobile companies, the Austin, Texas-based firm is the least affected by Trump’s tariffs as most of their products are manufactured domestically for the US market.
The car manufacturer currently produces the Model 3 and Model Y in its Shanghai factory for the Chinese market and exports them to international markets such as Europe. These two models also account for the majority of Tesla’s sales.
According to Li Yanwei, an analyst at the China Automobile Dealers Association, only 1,553 Tesla Model X and 311 Model S vehicles were imported into China in 2024. These two models accounted for less than 0.5% of the total sales of over 657,000 Tesla vehicles delivered in China last year.
Increasing competition from BYD and other domestic manufacturers has also impacted Tesla’s sales in China. In the first quarter of this year, Tesla’s global deliveries dropped by 25%, mainly due to outdated product lines and a wave of criticism directed at CEO Elon Musk.
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