Tesla suspends Model S and Model X sales in China due to tariffs

Tesla has reportedly ceased sales of its Model S and Model X vehicles in China, according to Bloomberg . This decision is a direct consequence of the 125 percent tariff imposed by China on goods imported from the United States. These particular Tesla models are manufactured in the US and are therefore subject to the retaliatory tariffs enacted in response to President Trump’s 145 percent levy on Chinese imports.

Read: Vivo X200 Pro Review: Tantalising telephoto While the discontinuation of Model S and Model X sales is not expected to significantly impact Tesla’s overall sales volume in China, as these high-end models represent a smaller portion of their regional demand, the company will cease offering them once existing inventory is depleted. The more popular Model 3 and Model Y vehicles, produced at Tesla’s Shanghai Gigafactory, remain unaffected by these tariffs. The ongoing trade dispute, characterized by reciprocal tariffs between the US and China, poses a potential threat to the electric vehicle industry in the United States.



Simultaneously, the European Union’s consideration of increased access for Chinese EVs could further disadvantage American automakers, given the notably lower price points of many Chinese-manufactured electric vehicles. Examples such as the BYD Seagull hatchback, priced at approximately $9,600 in US dollars, highlight the cost competitiveness of Chinese EVs. Furthermore, Chinese manufacturers are making significant advancements in autonomous driving technology.

The future of these tariffs remains uncertain. Their potential duration and scope are subject to geopolitical developments and policy decisions..