Tesla Stops Selling Model S and Model X in China — Here’s Why

Tesla just made a big move overseas that’s getting a lot of attention — they’ve stopped taking new orders for the Model S and Model X in China as of Friday, April 11, 2025.

While this might not affect most drivers in North America, it’s still a big deal. Why? Because it shows just how much global politics and trade decisions can shake up even the biggest names in the EV world.

Why did Tesla pause orders in China?

It all comes down to a growing trade war between the U.S. and China.

Last week, China announced a new 84% tariff on U.S.-made cars, responding to the U.S. raising tariffs on Chinese goods up to 145%. That makes it super expensive to ship American-built cars—like the Model S and X—into China.

Instead of trying to sell them at inflated prices, Tesla removed the “Order Now” button from its Chinese site for those models. They're still viewable, but you can’t place a new order right now.

What about other Tesla models?

Good news though—Tesla's Model 3 and Model Y are still available in China. That’s because they’re built at Tesla’s Gigafactory in Shanghai, so they aren’t impacted by these new import tariffs. These two models already make up the bulk of Tesla’s sales in the region.

What does this mean for Tesla?

Tesla doesn’t sell a ton of Model S and Model X vehicles globally—they only delivered about 12,881 in Q1 2025. But these models come with higher price tags and better profit margins. Some estimates say Tesla could lose around $170 million in revenue just from halting sales of these models in China.

This news comes at a time when Tesla’s stock has already been under pressure. Analysts have pointed to a growing “brand crisis,” fueled by both rising costs and concerns about CEO Elon Musk’s political involvement, especially as the trade tension heats up.

So even though this decision is happening across the globe, it’s a good reminder that EV companies operate in a fast-moving, interconnected world. One policy shift can impact everything from car availability to energy storage pricing.

For now, if you’re in the market for a Tesla in China, the Model S and X are off the table. And for the rest of us, it’s another sign of how international politics and business decisions can shape what’s coming down the road.


Source: New York Times