Tesla halts S and X sales in China amid tariff tensions
Tesla has stopped accepting orders for the S and X models in China. Although these cars are still visible on the manufacturer's Chinese website, it is not possible to order them, unlike models 3 and Y.
Tesla also removed the S and X models from its account on the WeChat Mini Programs app in China. This decision coincides with escalating trade tensions between the United States and China.
Last week, U.S. President Donald Trump increased tariffs on imported goods from China by 125%. In response, China imposed a 125% tariff on goods imported from the United States, significantly raising the prices of American cars like the Tesla Model S and X, making them less competitive compared to domestic vehicles.
Global sales of Tesla decreased by 13% in the first quarter of the year, and the tariff instability will likely worsen the situation. Recently, the manufacturer lowered the price of the updated Model Y by $11,000 and announced a cheaper version of the Cybertruck for just under $70,000.
The losses from halting Chinese sales should not be significant — last year, Tesla sold fewer than 2,000 units of the S and X models in China, while globally it delivered over 657,000 vehicles. The S and X models are manufactured at the Fremont factory in California, whereas in Shanghai, Tesla produces the 3 and Y models for the Chinese market, which constitute the majority of the company's sales.
