Tesla has stopped taking orders for its flagship electric vehicles, Model S and Model X, in China due to new tariffs imposed by the US on Chinese goods. The automaker imports these vehicles from its Fremont factory in California, making them more expensive for Chinese customers.
The 145% tariff on US goods, including vehicles, could almost double the cost of importing Tesla’s Model S and Model X into China. However, this move is unlikely to significantly impact Tesla’s business, as it delivered only around 2,000 Model S and Model X vehicles in China last year.
Tesla will still sell its remaining inventory but has low new stock for Model S and virtually no Model X. The decision highlights the challenges facing the electric vehicle industry during trade wars. While Tesla was making profits on Model S and X sales in China, the lost revenue could be substantial, around $170 million.
The trade war also affects Tesla’s energy business, which relies on Chinese battery cells entering the US. If tensions escalate, it may worry about its Shanghai factory, a rare auto factory wholly owned by a foreign automaker in China.
Source: https://electrek.co/2025/04/11/tesla-stops-taking-model-s-x-orders-china-amid-new-tariffs