The US-China trade war has led Tesla to stop accepting new orders for Model S and Model X imported vehicles in China since former President Donald Trump reinstated his trade policies. Tesla’s Chinese website and social media platforms lost their “order now” buttons for imported Model S and Model X vehicles under the leadership of Elon Musk, who maintains close ties to Trump.
Tesla has not issued any official statement regarding its decision yet, although the timing matches China’s increased tariffs on US imports, which now reach 125%. Trump’s trade policy has evolved into a complete 145% tariff system against Chinese imports. The retaliatory tax measures between the United States and China have elevated US product costs, including automobiles, to levels where Chinese consumers find domestic production more attractive.
The Tesla Model 3 and Model Y vehicles continue to be available because their production has occurred at the Shanghai Gigafactory since 2020. The suspension of new Model S and X orders represents a major business challenge for the company. Tesla maintains 40% of its battery materials suppliers in China despite its attempts to expand its supply chain beyond the country, which makes the company susceptible to future trade disputes.
The suspension of new orders creates additional obstacles for Tesla. The analysts attribute the negative impact on Tesla’s brand to Musk’s leadership role in Trump’s administration through the “Department of Government Efficiency,” which has damaged the company’s reputation, particularly in European markets with declining customer interest. Tesla faces challenges from Chinese automaker BYD because its outdated lineup cannot match the innovative new models from its Chinese competitor.
Tesla sent a warning to the White House about how these rising tariffs would negatively affect American companies. The suspension of US-made model sales in China indicates potential serious strategic and reputational challenges that face the electric car giant while global demand weakens and political complications grow.
