Tesla Halts New Orders for U.S.-Made Models in China as Trade Tariffs Escalate

The automaker’s decision to stop selling the Model S and Model X reflects growing costs from heightened U.S.-China tariffs and Tesla’s shifting strategy in a competitive EV market.

Tesla has stopped accepting new online orders for its U.S.-manufactured Model S and Model X vehicles in China following the escalation of trade tariffs between the U.S. and China.
The tariffs, now at 145% for U.S. imports into China and 125% for Chinese imports into the U.S., have significantly increased the cost of imported vehicles, making them less competitive in the Chinese market.
The locally produced Model 3 and Model Y, which account for the vast majority of Tesla’s sales in China, remain unaffected and available for purchase.
Tesla’s Model S and Model X made up less than 0.5% of its total sales in China in 2024, limiting the immediate financial impact of this decision.
The move underscores Tesla’s broader challenges in China, including declining sales, rising competition from domestic EV manufacturers like BYD, and the pressures of the ongoing trade conflict.

South China Morning Post