Tesla has stopped accepting new orders for its U.S.-manufactured Model S and Model X vehicles in China, according to checks on the company’s official Chinese website and WeChat mini-program, as tensions rise in the ongoing trade dispute between the U.S. and China.
The suspension comes as China imposed a sharp increase in tariffs on American imports, raising duties to 125% following U.S. President Donald Trump’s move to hike tariffs on Chinese goods to 145%. While Tesla has not provided an official explanation, the timing strongly suggests the decision is linked to the escalating trade war and resulting cost increases.
Both the Model S and Model X are produced in the United States and imported to China, making them significantly more expensive compared to domestically produced electric vehicles. Tesla’s locally built Model 3 and Model Y, manufactured at its Shanghai Gigafactory, continue to be available and account for the majority of Tesla’s sales in the region.
According to the China Auto Dealers Association, Tesla imported only 1,553 Model X and 311 Model S units into China in 2024—together representing less than 0.5% of the company’s total 657,000 vehicle deliveries last year. The declining demand for these premium models is further compounded by intensifying competition from domestic EV giants like BYD, as well as global backlash over Elon Musk’s controversial political commentary.
Deliveries in Tesla’s premium segment, which includes the Model S, Model X, and Cybertruck, were down 25% globally in Q1 2025. Analysts cite stagnant vehicle designs and growing geopolitical tensions as key factors behind the slowdown.
With the trade war showing no signs of de-escalation, Tesla’s move underscores the shifting dynamics in global auto markets, where geopolitics and local competition are beginning to reshape strategies for even the most dominant players.
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