Tesla stops accepting orders in China for models imported from the US

Tesla has stopped accepting orders in China for its Model S and Model X, which are imported from the United States. This happened against the backdrop of an escalating trade conflict between the United States and China, Bloomberg reports.

China announced that it will impose 125% tariffs on all US goods starting April 12, 2025, in response to similar actions by the Donald Trump administration. Including previous tariffs, the total tariff rate on US goods will rise to 145%.

Tesla's Chinese website offered pre-orders for these models back in March, but that option was removed in April. However, existing vehicles, including the Model S for 759,900 yuan (over $100,000), are still available.

While the Model S and Model X do not represent the bulk of Tesla's sales in China (less than 2,000 units in 2024), unlike the Model 3 and Model Y (over 660,000 units), the decision signals increasing pressure on the company, which is losing market share in the Chinese market, where BYD currently leads.

Meanwhile, production at Tesla's Shanghai factory has been falling for six straight months. Deliveries fell 22% in the first quarter. Analysts are concerned that Tesla has found itself at the center of a geopolitical battle between Washington and Beijing. Last year, the company received more than 20% of its revenue from the Chinese market.

Overall, Tesla's global deliveries also fell to their lowest level since 2022, amid criticism of Elon Musk and his political activism. The loss of part of the Chinese market could further complicate Tesla's position in the face of increasing competition.