BUSINESS

Tesla Halts Model S and Model X Sales in China as Trade Tensions Escalate

Published: Apr. 12, 2025 8:24 a.m. GMT+8

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A Tesla showroom in Shanghai, China, on Aug. 23, 2024. Photo: Bloomberg

Tesla has quietly removed its Model S and Model X vehicles from its China website, effectively halting sales of the two imported models as rising tariffs from an escalating U.S.-China trade war take a toll on the electric carmaker in one of its most crucial markets.

The move, confirmed on Friday, underscores the growing impact of trade tensions sparked by U.S. President Donald Trump’s new round of tariffs — reaching 145% on Chinese goods — and China’s retaliatory measures. Tesla’s Model S and Model X, both made in California, had been sold in China as fully imported vehicles, making them essentially unviable under the current level of tariffs.

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Explore the story in 30 seconds

Tesla removed Model S and Model X from its China website due to increased U.S.-China tariffs, making them commercially unviable.
The Shanghai Gigafactory remains critical for Tesla's production and exports, but rising tariffs and strained U.S.-China relations impact Tesla's China-based supply chain and regulatory challenges.
Elon Musk's political ties to Trump and U.S. trade policies have added complexities to Tesla's operations in China, affecting market competitiveness and stock performance.

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Who’s Who

Tesla: Tesla has removed its Model S and X from China due to high tariffs amid U.S.-China trade tensions. These models are made in the U.S., unlike the Shanghai-produced Model 3 and Y. Tariffs hurt Tesla’s China-based supply chain and operations, complicating regulatory approvals like its Full-Self Driving technology. CEO Elon Musk’s ties with Trump and tensions with trade advisers add complexities, impacting Tesla’s business outlook despite strong Shanghai factory performance. Sales of affected models in China were minimal in 2024.

AI generated, for reference only