Overview

• Tesla has stopped taking new orders for its US-manufactured Model S and Model X vehicles in China, citing the impact of heightened tariffs.
• China increased tariffs on US imports to 125% on April 11, 2025, following the United States' imposition of cumulative tariffs of 145% on Chinese goods.
• The suspension highlights Tesla's reliance on locally produced Model 3 and Model Y vehicles, which account for the majority of its sales in China.
• While new orders are paused, Tesla continues to sell existing inventory of the Model S and Model X in the Chinese market.
• The tariff-induced price hikes further strain Tesla's profit margins on imported models, intensifying competition with Chinese EV makers like BYD.