A Tesla Model S Plaid was showcased at the China International Import Expo in Shanghai, China on November 6, 2022. According to Reuters checks on Friday, Tesla has halted the acceptance of new orders for its Model S and Model X vehicles on its Chinese website. This decision comes amid the ongoing trade tensions between the world’s two largest economies.
Both the Model S and Model X are manufactured in the U.S. and imported into China. The option to place new orders for these models was also removed from Tesla’s WeChat mini program account in China. Tesla has not yet provided a comment on this development.
While Tesla has not specified the reason behind this decision, it coincides with the escalating trade war between China and the U.S. In response to President Donald Trump’s decision to increase tariffs on Chinese goods to 145%, China raised its tariffs on U.S. imports to 125% on Friday.
The higher U.S. tariffs have resulted in a significant increase in the retail prices for Chinese consumers, making Tesla vehicles more expensive compared to locally produced electric vehicles. Tesla, based in Austin, Texas, is relatively less impacted by the tariffs as it primarily manufactures domestically for U.S. sales.
The company produces Model 3 and Model Y cars at its Shanghai plant for the Chinese market and for exports to regions like Europe, constituting a significant portion of its sales. In 2024, China imported 1,553 Model X cars and 311 Model S cars, which represented less than 0.5% of Tesla’s total deliveries of over 657,000 vehicles last year.
Tesla has faced increasing competition from local manufacturers like BYD 002594.SZ, impacting its sales in China. Deliveries of Tesla’s premium sedan and SUV models, along with the Cybertruck, experienced a 25% decline globally in the first quarter, attributed in part to the lack of vehicle upgrades and criticism of CEO Elon Musk’s political views. To access more CNN news and newsletters, you can sign up for an account at CNN.com.
