Tesla Halts Orders in China on U.S. Imported Models
Tesla has stopped accepting new orders in China for two car models that it imports from a factory in the United States, after the Chinese government imposed steep tariffs on American imports.
On Friday, Tesla's website in China removed the 'order' button from the Model S sedan and Model X sport utility vehicle. Customers still have the option of purchasing one of those models, produced at its Fremont, Calif., factory, if the company has existing inventory.
Tesla did not explain why customers could no longer order those models, but the change came a day after China raised its import tariffs on U.S. goods to match the level of President Trump's so-called reciprocal tariffs at the time.
Since then, Mr. Trump raised tariffs an additional 41 percent to punish Beijing for its retaliatory move, bringing the total duty on imports from China to 145 percent. On Friday, China countered by also lifting its tariffs another 41 percent on American imports, starting on Saturday.
Tesla is still selling the Model S in a few Chinese cities where it has inventory. The Model S and Model X, two of the company's more expensive offerings, are not big sellers in China.
Tesla did not immediately respond to an email for comment.
Elon Musk, Tesla's chief executive and an aide to Mr. Trump, has not openly criticized the president's tariff campaign, but he has made veiled remarks advocating for all tariffs to be removed. He has also publicly feuded with Peter Navarro, a White House senior adviser and one of the architects of Mr. Trump's trade policy.
Tesla operates an automobile factory and a battery plant in Shanghai. The Gigafactory, which opened in 2020, was Tesla's first car factory outside of the United States. At the Shanghai facility, the company produces the Model 3 midsize sedan and Model Y sport utility vehicle for sale in China and export abroad.
Among foreign automakers, Tesla has one of the coziest relationships with the Chinese government. Tesla's Shanghai Gigafactory was the first automobile factory in China to gain approval to be wholly owned by a foreign company without a domestic partner. Mr. Musk has gained unusual access to senior Chinese leaders, working closely with Li Qiang, China's premier who used to be the top official in Shanghai.
In March, Tesla's sales of its China-made cars fell 11.5 percent compared to a year earlier, according to the China Passenger Car Association. Tesla has struggled to fend off Chinese competitors from aggressively chipping away at its market share in China. The company's main competitor, BYD, marked a 23 percent increase in sales during the month.
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