Tesla Halts New Orders for US-Made Models S and X in China Amid Rising Trade Tensions

Tesla has suspended the ability to place new orders for its US-made Model S and Model X electric vehicles on its Chinese website, as trade tensions between the US and China continue to escalate.

The decision to remove the “order now” option for the two imported models follows recent moves by China to raise tariffs on US goods, including automotive imports.

The change was noticed on Tesla’s China website and WeChat mini-programme account, where new orders for the Model S and Model X, which are both manufactured in the US and imported to China, are no longer available. However, existing inventory for these models remains accessible for purchase. As of Friday, potential buyers can still view available stock, such as a white Model S priced at approximately 759,900 yuan ($103,800).

While Tesla has not provided an official comment on the move, it comes after China increased tariffs on US imports, a response to US tariffs that have been a key point of contention in the ongoing trade dispute. This development follows a series of tariff hikes between the world’s two largest economies, which has intensified pressure on companies with significant exposure to both markets.

Tesla’s production facility in Shanghai only manufactures the Model 3 and Model Y, which are primarily sold in China or exported to other Asian markets. As a result, the Model S and Model X must be imported into China, making them more susceptible to the effects of rising tariffs. In 2024, China imported 1,553 Model X cars and 311 Model S cars, according to data from the China Auto Dealers Association.

Industry analysts suggest that the Model S and Model X may face additional challenges in the Chinese market due to their higher prices and the tariffs now imposed on US goods. Some observers believe that these models, which are older and relatively expensive for the local market, may struggle to compete with newer, more affordable electric vehicles from both domestic and international manufacturers.

In addition to the tariff dispute, Tesla’s sales in China have also been affected by heightened competition and increasing geopolitical tensions. In March, Tesla China reported a decline in vehicle sales, with 78,828 units sold, marking an 11% year-on-year decrease. The company also exported only 4,701 units during the same period.

Reuters, Bloomberg, and the Wall Street Journal contributed to this report.