Overview

• 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.