Tesla suspends premium imports to China as trade war erupts—Model S and X vanish from site as 125% tariffs hit.
Tesla has stopped taking new orders for its U.S.-made Model S and Model X in China, both through its official website and WeChat mini-program. The move comes hours after China imposed a 125% tariff on all U.S. goods, retaliating against Trump’s steep 145% duties.
- Tesla has not issued a public statement, but analysts say the halt is a direct response to the soaring import costs.
What It Means:
- Both vehicles are made in the U.S. and now face extreme pricing in the Chinese market due to tariffs.
- China imported just 1,864 Model S/X units in 2024, making them <0.5% of Tesla’s total deliveries.
- Tesla delivered over 657,000 vehicles in China last year—mostly from its Shanghai Gigafactory (Model 3 & Y).
China’s EV Shift:
- Domestic rivals like BYD are dominating the market with cheaper, localized offerings.
- Chinese consumers are now less willing to buy pricey U.S. imports, especially amid geopolitical tensions.
- Tesla’s high-end lineup was already seeing 25% global sales decline in Q1, partly due to lack of innovation and CEO backlash.
As the U.S.-China trade war intensifies, Tesla’s premium imports are the first to fold. With rising tariffs, fierce local competition, and political backlash swirling, even Elon Musk’s global empire isn’t immune. Expect Tesla to lean harder into local production—or risk ceding more ground in the world’s biggest EV market.
