Amid escalating trade tensions between the United States and China, Tesla has reportedly ceased selling its Model S and Model X vehicles in the Chinese market. Tech news outlet Engadget cited a Bloomberg report, revealing that the “Order Now” option for these vehicles was previously available on Tesla’s Chinese website until late last month but has now been removed.
While Tesla operates a factory in Shanghai, these particular models are imported from the U.S., making them subject to a hefty 125% tariff imposed by China. This tariff directly responds to former President Trump’s 145% levy on Chinese imports.
However, industry analysts suggest suspending these models’ sales may not significantly impact Tesla. The Model S and Model X have historically underperformed in the Chinese market, with the China Automotive Technology and Research Center reporting fewer than 2,000 units sold last year. In stark contrast, sales of the locally produced Model 3 and Model Y at Tesla’s Shanghai Gigafactory soared to 661,820 units.
The ongoing trade dispute between the U.S. and China has raised concerns about potential long-term consequences for the American electric vehicle (EV) industry. Adding to these worries, the European Union is now exploring options to increase imports of Chinese EVs, potentially putting further pressure on U.S. automakers in the global market.
