In a surprising move, Tesla has paused all new orders for its Model S and Model X vehicles in China, raising concerns about the impact of the ongoing U.S.-China trade dispute on the electric vehicle (EV) market.
A quick search on Tesla’s official Chinese website and WeChat mini program now shows that both the Model S and Model X — two of Tesla’s luxury offerings imported from the U.S. — are no longer available for purchase. Tesla has not officially commented on the decision, but the timing suggests a link to the escalating trade war between the two global economic giants.
On Friday, China announced a sharp increase in tariffs on U.S. imports, now sitting at a staggering 125%. This move comes in retaliation to President Donald Trump’s recent tariff hike on Chinese goods to 145%, reigniting tensions between the two countries and threatening cross-border industries like automotive trade.
For Chinese consumers, the higher tariffs mean that imported American vehicles like Tesla’s Model S and X will become significantly more expensive compared to local EVs. That price disparity makes Tesla’s luxury imports a tough sell in a market that’s already dominated by affordable, tech-savvy domestic brands like BYD.
Despite the halted orders for these two premium models, Tesla’s overall business in China remains strong thanks to its Shanghai Gigafactory. The facility manufactures the Model 3 and Model Y — Tesla’s most popular models — for both domestic sales and export, accounting for the bulk of the company’s global deliveries.
In 2024, China imported only 1,553 units of the Model X and just 311 units of the Model S, according to data from the China Auto Dealers Association. Combined, these models represented less than 0.5% of Tesla’s total vehicle deliveries, which exceeded 657,000 last year.
However, the decision to stop new orders may signal more than just trade troubles. Tesla’s premium segment, which includes the Model S, Model X, and the Cybertruck, has seen a 25% drop in global deliveries in Q1 of 2025. Analysts attribute this decline not only to rising competition from domestic brands but also to a lack of meaningful upgrades to the vehicles and growing public backlash against CEO Elon Musk’s political positions.
With China being one of Tesla’s largest markets, the company will need to carefully navigate the evolving trade dynamics and intensifying local competition. Whether this is a temporary suspension or a long-term strategic shift remains to be seen.
