Tesla Halts New Orders for Model S and Model X in China Amid Rising Tariff Tensions

Tesla has quietly stopped accepting new orders for its premium Model S and Model X vehicles in China, signaling rising economic tensions between the United States and China may be impacting the electric vehicle giant more than expected.

A quick search on Tesla’s official Chinese website and WeChat mini program reveals that both vehicle options have been removed from the order list. The company has yet to release a formal statement regarding the decision.

Escalating Tariffs and Competitive Pressure May Be Behind the Move

Although Tesla hasn’t offered an official explanation, the decision comes just as the trade war between the world’s two largest economies intensifies. On Friday, China imposed tariffs of up to 125% on certain U.S. imports—just hours after the U.S. raised its own duties on Chinese goods to 145%. These steep tariffs are expected to heavily inflate the prices of imported vehicles like the Model S and Model X, placing them well above the price range of domestically produced electric alternatives.

While Tesla manufactures the more popular Model 3 and Model Y in its Shanghai Gigafactory—models that represent the bulk of its Chinese sales—both the Model S sedan and Model X SUV are imported from the United States. That distinction makes them vulnerable to the new tariff rules.

According to data from the China Auto Dealers Association, China imported only 1,553 Model X units and a mere 311 Model S vehicles in 2024. Together, they accounted for less than 0.5% of Tesla’s over 657,000 global deliveries last year.

Adding to the challenge is fierce competition from domestic manufacturers such as BYD, whose aggressive pricing and technological advancements continue to erode Tesla’s market share. Deliveries in the segment that includes the Model S, Model X, and Cybertruck fell by 25% globally in Q1—partly due to aging models and public criticism aimed at CEO Elon Musk.

With mounting political friction and an increasingly crowded EV market in China, Tesla’s latest move may be a strategic pause as it recalibrates for the long-term.