Tesla halts Model S, Model X orders in China amid trade tensions

Tesla has stopped taking new orders for its Model S and Model X vehicles in China, according to an update on its official website on April 11. The order pages for both models are now offline.

The move comes amid escalating trade tensions between the U.S. and China. President Donald Trump recently raised tariffs on Chinese imports, prompting China to retaliate with an 84% tariff on U.S. goods, including automobiles .

Since the Model S and Model X are manufactured in the U.S., the increased tariffs make them significantly more expensive for Chinese consumers.

The Model 3 and Model Y—which are produced at Tesla’s Shanghai Gigafactory—remain available for direct order, with no changes to their listing options.

🔗 Source: Henan Daily

🧠 Food for thought

1️⃣ Tesla’s premium model retreat reflects shifting market dynamics in China

Tesla’s decision to halt new Model S and X orders in China highlights a strategic adjustment to the company’s position in the world’s largest EV market.

The company’s market share in China has already declined significantly, dropping from 7.6% in 2023 to just 5.9% in 2024, with 659,012 deliveries against growing local competition 1.

More recent data shows Tesla’s domestic sales in China declined by 14% to 60,480 units in early 2025, revealing the challenging competitive landscape the company faces 2.

This retreat from premium models reflects Tesla’s focus on its higher-volume vehicles (Model 3 and Model Y) that offer better economies of scale in increasingly competitive markets.

The decision also coincides with Chinese manufacturers dominating their domestic market, with local brands capturing 69.4% share of China’s passenger vehicle market 2.

2️⃣ Chinese EV manufacturers have established clear market dominance

The removal of Model S/X from new orders comes as Chinese automakers have achieved leadership in their domestic EV market through aggressive pricing and innovation.

BYD has established itself as the leader in China’s NEV space, selling 290,209 units in March 2025 alone and commanding a 29.3% market share – nearly four times Tesla’s share of 7.5% in the same period 3.

The competitive gap is widening as companies like Geely surge ahead with 110,894 units sold in March, representing a 165.3% year-over-year increase and positioning them ahead of Tesla in the market rankings 3.