Tesla has stopped taking new orders for its Model S and Model X vehicles in China. These models, built in the United States, were removed from Tesla’s Chinese website and WeChat store, as confirmed on Friday. This move comes during growing trade tensions between China and the U.S. On the same day, China raised import tariffs on American goods to 125%. The tariff increase follows the U.S. raising duties on Chinese imports to 145%. As costs climb, imported Teslas have become less competitive compared to local electric vehicles (EVs), leading to this sudden decision.
Tesla Pauses Sales of Imported Models
Tesla no longer accepts new orders for the Model S sedan or the Model X SUV in China. A check on Tesla’s official website and WeChat mini app confirmed the change. These two models are not made in China—they are built in the U.S. and shipped overseas.
So far, Tesla has not shared an official reason for stopping orders. However, this decision came on the same day China raised tariffs on American-made goods. These high import taxes have made U.S. cars much more expensive in China.
Trade Tensions Hit the Auto Sector
The timing of Tesla’s decision suggests it may be linked to the ongoing trade dispute between the world’s two biggest economies. On Friday, China increased tariffs on U.S. imports to 125%. This followed the U.S. raising its own tariffs on Chinese products to 145%.
These rising costs directly affect the price of U.S.-made vehicles in China. For Chinese buyers, the Model S and Model X are now more costly than EVs built locally. As a result, these models have become less appealing to customers in China.
Local Production Keeps Tesla Competitive
Tesla builds most of its vehicles for the Chinese market in Shanghai. The company’s Shanghai Gigafactory makes the popular Model 3 and Model Y models, which account for most of Tesla’s sales in China and Europe.
According to the China Auto Dealers Association, Tesla imported only 1,553 Model X vehicles and 311 Model S vehicles into China in 2024. Together, these made up less than 0.5% of Tesla’s total deliveries worldwide, which topped 657,000 vehicles last year.
“These U.S.-made models are no longer cost-effective under the current tariff conditions,” said Li Yanwei, an analyst at the China Auto Dealers Association.
Local Rivals Take the Lead
Tesla is also facing more competition in China from local EV makers like BYD and Nio. These brands offer cheaper, feature-rich models that are fully made in China and unaffected by international tariffs.
With strong marketing and quick product updates, companies like BYD are attracting Chinese buyers who want value and advanced features. Tesla’s Model S and Model X, while known for their performance and design, have not had major upgrades recently.
Global Sales of Premium Models Decline
Tesla’s high-end vehicle category, which includes the Model S, Model X, and Cybertruck, has seen a global drop in demand. In the first quarter of 2025, deliveries in this category fell by 25%.
Industry experts point to several reasons for the decline. One is the lack of updates to these older models. Another is public backlash over comments made by Tesla CEO Elon Musk, which may have hurt the brand’s image in some markets.
What’s Next for Tesla in China?
Although Tesla is pausing sales of two of its premium models, the company still holds a strong position in China with its locally made Model 3 and Model Y. These vehicles are not affected by the trade dispute and continue to perform well.
As China and the U.S. continue their tariff standoff, Tesla may focus more on domestic manufacturing and potentially explore ways to produce its premium models abroad to avoid high taxes.
