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2w ago

Tesla Halts Model S and Model X Orders in China as Tariff Costs Surge

The decision follows steep retaliatory tariffs in the US-China trade dispute, nearly doubling costs for imported vehicles.

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Tesla has stopped taking orders for the Model S sedan and Model X utility vehicles in China
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A Model X is displayed at the China International Import Expo in Shanghai on November 6, 2018. Photo: AFP

Overview

  • Tesla has stopped accepting new orders for its US-made Model S and Model X vehicles in China, citing the impact of recent tariff increases.
  • The US imposed 145% tariffs on Chinese goods, with China responding with 84% tariffs on US imports, including vehicles, significantly raising costs for automakers.
  • Model S and Model X, imported from Tesla's Fremont, California factory, now face nearly doubled costs in China due to these tariffs.
  • While these models represent a small portion of Tesla's sales in China, the suspension highlights the vulnerability of imported vehicles in trade disputes.
  • CEO Elon Musk has publicly criticized US trade policies, expressing frustration over their impact on Tesla's operations and broader global business.