Tesla has stopped accepting new orders for its Model S and Model X vehicles on its Chinese website, according to checks made by Reuters on Friday. Both of these models are imported from the U.S. into China, and they were also removed from the automaker’s WeChat mini program for orders in China.
Tesla has not provided any explanation for the decision, but the move comes amid a tense trade conflict between the U.S. and China. On Friday, China raised its tariffs on U.S. imports to 125% in retaliation for U.S. President Donald Trump’s decision to increase tariffs on Chinese goods to 145%. These tariff hikes significantly raise the retail price of U.S.-made cars, making them more expensive compared to locally produced electric vehicles (EVs).
Tesla is less impacted by these tariffs compared to other automakers due to its U.S.-focused manufacturing, but it still faces challenges in China. The company produces its Model 3 and Model Y at its Shanghai plant for both domestic sales and export to other markets, including Europe. These models account for the bulk of Tesla’s sales in China, with Model S and Model X making up a smaller portion.
In 2024, China imported 1,553 Model X cars and 311 Model S cars, which accounted for less than 0.5% of Tesla’s total deliveries of over 657,000 vehicles last year. Tesla is also facing growing competition from Chinese manufacturers like BYD, which has affected its market share in China. Additionally, deliveries of Tesla’s premium sedan and SUV models, as well as the Cybertruck, dropped 25% in the first quarter globally, partly due to a lack of updates to these vehicles and backlash against CEO Elon Musk’s political views.