A Tesla Model S at a charging station in Beijing, China.
Meghan Reeder | CNBC
Tesla has suspended taking new orders for Model S and Model X vehicles on its Chinese website, Reuters checks showed on Friday, as the world’s two largest economies exchange blows in a trade war.
Both models are made in the U.S. and imported to China. New orders for the two models were also no longer available on the automaker’s WeChat mini programme account in China.
Tesla did not immediately respond to a request for comment.
While the company did not give a reason for the move, it comes as China and the U.S. have been locked in an escalating trade war. China on Friday raised its tariffs on U.S. imports to 125% on Friday after President Donald Trump’s decision to hike duties on Chinese goods to 145%.
Higher U.S. tariffs significantly increase the retail cost for Chinese consumers, making these cars more expensive than locally produced EVs.
The Austin, Texas-based company is least affected by Trump’s tariffs among automakers due to its largely domestic manufacturing for sales in the U.S.
The U.S. automaker makes Model 3 and Model Y cars at its plant in Shanghai for sale in the country and exports to markets such as Europe, making up the vast majority of its sales.
China imported 1,553 Model X cars and 311 Model S cars in 2024, said Li Yanwei, an analyst with the China Auto Dealers Association.
The two models accounted for less than 0.5% of Tesla’s deliveries of more than 657,000 vehicles last year.
Increasing competition from BYD 002594.SZ and other local manufacturers has also hit sales of Tesla’s vehicles in China.
Deliveries of the category that includes Tesla’s premium sedan and SUV models and the Cybertruck were down 25% in the first quarter globally, largely due to the lack of upgrades to the vehicles and backlash against CEO Elon Musk’s politics.