Tesla suspends orders for model S and X in China amid trade war
Illustrative photo: No official comments from the company (Getty Images)
Tesla suspends new orders for model S and model X cars on its Chinese website amid the US-China trade war, according to CNN.
Both cars (Model S and Model X) are manufactured in the US and imported to China. New orders for these models have been made unavailable not only on the website but also through Tesla's mini-app in WeChat.
While the company has not provided an official explanation, this move comes amid the intensifying trade war between China and the US. On Friday, Beijing raised tariffs on imports from Washington to 125% after US President Donald Trump decided to increase tariffs on Chinese goods to 145%.
Higher tariffs in the US significantly increase the retail price for Chinese consumers, making these cars more expensive than locally manufactured electric vehicles.
Tesla, based in Austin, Texas, has been less affected by Trump's tariffs compared to other automakers, as it produces most of its vehicles for the US market domestically. Meanwhile, Tesla produces its Model 3 and Model Y cars at its Shanghai plant, both for the Chinese market and for export to Europe, and these models make up the bulk of the company's sales.
According to analyst Li Yanwei from the China Automobile Dealers Association, in 2024, 1,553 Model X cars and 311 Model S cars (which are now suspended for orders in China) were imported to China. These two models accounted for less than 0.5% of Tesla's total deliveries, which exceeded 657,000 vehicles last year.
Additionally, growing competition from Chinese manufacturers such as BYD has also negatively impacted Tesla's sales in China. Deliveries of Tesla's premium sedans and SUVs, as well as the Cybertruck, decreased by 25% in the first quarter globally, mainly due to a lack of updates for the models and criticism of Elon Musk's political statements.
Elon Musk's financial position
This week, Elon Musk's net worth fell below $300 billion for the first time since November. The reason for this drop is attributed to the tariffs imposed by Trump, which also affect Musk's close associates.
According to the Wall Street Journal, Musk has openly opposed Trump's tariff policy, and other billionaires have supported him in this stance.
