13 April, 2025; In a surprising yet telling move, Tesla has halted new orders for its U.S.-manufactured Model S and Model X vehicles in China, reflecting the intensifying impact of the ongoing U.S.-China trade war on the global automotive market.
The suspension was quietly enacted, with Tesla removing the option to order these premium electric models from its official Chinese website and WeChat mini program. While no official statement has been made by the company regarding the halt, the timing strongly suggests it is a response to rising trade tensions between the world’s two largest economies.
The decision comes as the U.S. and China continue to exchange tariff increases on a wide range of goods, including automobiles. China recently signaled a potential increase in tariffs on U.S.-made vehicles in retaliation to American measures targeting Chinese imports. If implemented, these tariffs could significantly inflate the cost of Tesla’s U.S.-produced models in China, making them less competitive in one of the company’s most important markets.
China is a key player in Tesla’s global strategy. The automaker operates a Gigafactory in Shanghai, which produces the more affordable Model 3 and Model Y vehicles for the Chinese and other international markets. These locally-made models remain available for purchase and are likely to become even more central to Tesla’s operations in the country in light of the new restrictions.
Industry analysts see Tesla’s move as a sign of the broader strain that geopolitical conflicts are placing on international commerce. “This is not just a Tesla issue—it’s a snapshot of how the auto industry is being reshaped by global political tensions,” noted one analyst. “Manufacturers are having to rethink supply chains, production strategies, and market access in real time.”
As the trade dispute shows no signs of resolution, Tesla and other automakers may face increased pressure to localize production and shift supply chain operations to avoid steep tariffs and ensure market stability.
Whether Tesla will resume orders for the Model S and Model X in China remains uncertain, and will likely depend on the evolving trade policies between Washington and Beijing.
