Tesla stops new orders for two US models in China

Tesla stops new orders for two US models in China

Tesla has stopped recording new orders for the S and X models on its Chinese website. Reuters reported this on Friday. This decision is made in the middle of an escalating trade war between the two largest economies in the world.

market strategy and implications

Both models, the Model S and Model X, are manufactured in the USA and imported to China. New orders about Teslas Wechat Mini program in China are no longer available. Tesla initially did not respond to an inquiry regarding a comment on this situation.

trade conflict between the USA and China

Although the company has not given a specific reason for this step, it falls into a time when China increased the tariffs to US imports to 125 %. According to President Donald Trump's decision, this happened to increase the tariffs to Chinese goods to 145 %. The higher tariffs in the USA lead to a significant increase in retail prices for Chinese consumers and make these models more expensive than local electric vehicles (EVS).

production and sales in China

Despite the rising tariffs, Tesla is less affected compared to other automobile manufacturers, as a large part of the production is domesticated for the US market. In Shanghai, the US automobile manufacturer produces the models 3 and Y that sells in the country and exported to markets such as Europe. These models make the majority of Tesla sales.

sales figures and competitive pressure

According to Li Yanwei, an analyst of the China Auto Dealers Association, China imported only 1,553 model X and 311 Model S. In 2024 These two models made less than 0.5 % of the more than 657,000 deliveries of Tesla last year. In addition, the growing competition between BYD and other local manufacturers has also affected Tesla's sales in China.

global market development

The deliveries in the segment, the Teslas Premium sedan and SUV models as well as the cybertruck, fell globally by 25 %in the first quarter. This decline is largely due to the lack of vehicle upgrades and the negative reaction to the political statements of CEO Elon Musk.