Jobaaj Stories
Tesla Suspends Orders for U.S.-Made Model S and X in China Amid Trade Tensions
Tesla has quietly stopped accepting new orders for its U.S.-manufactured Model S and Model X electric vehicles in China, amid growing trade tensions and rising import tariffs between the United States and China.
The change was first noticed on Tesla’s official Chinese website and WeChat mini-program, where the “order now” option for the two luxury models has been removed. Customers in China can still browse the product listings for these cars, but they are no longer able to place new orders.
Tesla has not made a public statement regarding the decision. However, the move comes at a time when both countries are engaged in a tense trade dispute that has led to increased tariffs on each other’s exports, particularly in the automotive sector.
U.S.-China Tariff War Hits Auto Imports
Earlier this year, the United States raised tariffs on several Chinese products, increasing some import duties to as much as 145%. China responded by imposing higher tariffs of up to 84% on American-made goods, including electric vehicles (EVs).
This tit-for-tat policy is widely seen as an attempt by both nations to protect domestic industries. Tesla’s Model S and Model X, both built at its main factory in California, are directly affected by these new tariffs. Importing these vehicles into China has now become significantly more expensive.
Impact on Tesla’s Sales Strategy
Tesla has been aggressively expanding in China, which is the world’s largest market for electric vehicles. However, its strategy relies heavily on its Shanghai Gigafactory, which produces the Model 3 and Model Y for both local and international markets. These models are not affected by the current order suspension, as they are built within China and are exempt from the import tariffs.
According to Chinese customs data, Tesla imported just 1,553 Model X and 311 Model S units into China in 2024. These figures suggest that the two models make up only a small share of Tesla’s total sales in the country. Still, the halt in new orders is a strong signal of how international politics and trade policy can influence even the largest global companies.
What This Means for Tesla’s Future in China
Although the Model S and Model X are considered Tesla’s premium offerings, their limited sales volume in China means the suspension may not heavily impact Tesla’s revenue. But the move could set a precedent for how companies adapt their operations based on evolving global trade policies.
There is currently no word on whether Tesla plans to restart orders in China for the Model S and Model X in the future, or if the halt will be permanent. For now, the company appears to be focusing its efforts on locally made vehicles that are unaffected by international trade tensions.
