Tesla has paused new orders for the Model S and Model X vehicles on its Chinese website, as reported by Reuters on Friday, amid escalating tensions in the trade war between the world’s two largest economies.
Both models are manufactured in the U.S. and imported to China, and new orders for them are also unavailable on Tesla’s WeChat mini program account in China.
Tesla has not yet responded to requests for comment regarding this decision.
Although the company did not disclose a specific reason for the suspension, it coincides with China’s recent increase in tariffs on U.S. imports to 125%, following President Donald Trump’s decision to raise duties on Chinese goods to 145%.
The elevated U.S. tariffs significantly raise the retail price for Chinese consumers, making these imported vehicles more expensive compared to locally produced electric vehicles (EVs).
The Austin, Texas-based automaker is less affected by Trump’s tariffs than other manufacturers due to its substantial domestic production for the U.S. market.
Tesla produces the Model 3 and Model Y at its Shanghai plant for sale in China and for export to regions like Europe, accounting for the vast majority of its sales.
According to Li Yanwei, an analyst with the China Auto Dealers Association, China imported 1,553 Model X cars and 311 Model S cars in 2024. These two models represented less than 0.5% of Tesla’s overall deliveries of over 657,000 vehicles last year.
Increased competition from local manufacturers such as BYD (002594.SZ) has also impacted Tesla’s sales in China.
Delivery figures for the segment that includes Tesla’s premium sedan and SUV models, as well as the Cybertruck, dropped 25% globally in the first quarter, largely due to a lack of vehicle updates and backlash against CEO Elon Musk’s political views.
