Tesla has stopped accepting new orders in China for two car models imported from US factories after the Chinese government imposed sudden tariffs on US imports.
On Friday, the Chinese Tesla website removed the “Order” button from the Model S sedan and Model X Sport Utility Vehicle. Customers have the option to purchase one of the models produced at their Fremont, California factory.
Tesla did not explain why customers were unable to order these models, but the change came just after China raised import duties on US goods to match the level of then-President Trump's so-called mutual tariffs.
Since then, Trump has raised an additional 41% to punish Beijing for retaliatory moves, and increased his total import obligation from China to 145%. On Friday, China rebutted by lifting an additional 41% tariff on US imports, which began on Saturday.
Tesla still sells Model S in several Chinese cities in stock. The Model S and Model X are more expensive products from the two companies and are not big Chinese sellers.
Tesla did not immediately respond to emails for comments.
Tesla's chief executive and Trump's aide Elon Musk has not publicly criticised the president's tariff campaign, but he has veiled his defense of defending all tariffs being removed. He also publicly rebutted Peter Navarro, a senior White House adviser and one of Trump's trade policy architects.
Tesla operates an auto and battery factory in Shanghai. Opened in 2020, GigaFactory was Tesla's first automotive factory outside the United States. At the Shanghai facility, the company produces Model 3 medium-sized sedans and Model Y Sports Utility vehicles sold in China and exported overseas.
Among foreign automakers, Tesla has one of the most comfortable ties with the Chinese government. Tesla's Shanghai Giga Factory was the first automobile factory in China to approve it to be owned entirely by a foreign company that has no domestic partners. Musk is working closely with Li Qiang, the Chinese Prime Minister who gained extraordinary access to senior Chinese leaders and once became Shanghai's best official.
Sales of Chinese-made Tesla cars fell 11.5% in March compared to a year ago, according to the Chinese Passenger Automobile Association. Tesla is struggling to dodge Chinese competitors by actively lacking China's market share. The company's main competitor, BYD, showed a 23% increase in sales that month.
