Tesla ceases to sell the S and X model in China for the US and China commercial war, the high rates and the fall of the local demand.
Tesla took a decision That caused an controversy in it Car sector international: Stop accepting orders of his model and Xin’s model in China. Although the news was a surprise to many, it responds to a series of economic factors, politicians and traders whose cause Increasing tension between the United States and China.
Commercial war is the cause
The main cause of this decision It is the intensification of the commercial war between Washington and Beijing. He President of the United States., Donald Trump. reactivated (and reinforced) the tariff policy against China, Increasing taxes to imports from the huge Asian up to 145%.
In response, The Chinese government imposed a 125% rate About American products, which directly affect companies such as Tesla. And that’s how this tariff climb has The export costs were more expensive of products manufactured in the US on the Chinese market.
As a result, models (deserves redundancy) The S and the X model, both products on the American soil, Became economically impossible for the Chinese average consumer. Actually Tesla changed the site on China: has removed the “Buy now” button For these two vehicles and replaced him with options like “see the car” and “schedules a management test”.
Tesla China bets on commercial viability
Although the measure might seem drastic, Tesla did not completely abandon the Chinese market. The company continues to offer model 3 and model models and, vehicles that give Are assembled in the Shanghai plantwhich exempt them from the big rates and makes them more competitive in the price.
Actually, These two models are currently representing the majority of brand sales in ChinaA market, as we all know, key to any car manufacturer. The withdrawal of the most luxurious models is also explained by the product life cycle. I explain you.
He Model sThat Was initially launched in 2012, Although it has been updated several times, begins to show signs of aging In front of a competition that evolves at high speed. He Model X.on the other hand, never reached a volume of sales comparable to that of his brothers more accessible.
But Tesla has not completely excluded the sale of these units, That is, it is still possible to perform driving tests and access some vehicles in stock. But the strategy is clear: reducing exposure to the impact of tariffs and Focus -on models that can compete in terms equal to local brands.
Political weight and personal tensions
To all this we must add, of course, rElación increasingly tense between Elon Musk and Donald Trump’s administration. Although the businessman tried to observe the negative effects of the tariffs for the US economy, it seems that no one has taken it seriously.
And tension climbed when Musk went public against Peter Navarro, Main Trump tariff advisor, who He called “stupid” and “darker than a bag of bricks”. And is that Navarro had rejected the tycoon’s objections, assured that:
Press associations
–The difference consists in our way of thinking and Elon’s: We want the tires to be manufactured in Akron. We want the transmissions to be manufactured in Indianapolis. We want the engines to make in Flint and Saginawand We want cars to make here”
Musk’s response has not been a long time: “Navarro is a real stupid. What he says here is obviously false”
Although the rates are trying to protect jobs and promote national production, Get to affect companies like Tesla This paradoxically already produce more CCOCHE in the United States than any other manufacturer.
Dependence of Chinese suppliers
Another factor that complicates the situation It is High dependence on Tesla in terms of Chinese suppliersespecially in terms of batteries. According to one Analysis Nikkei Asia from 2023, next to 40% of the materials that Tesla uses for its batteries come from China companies.
In this context, Trump administration measures are counterproductive For a company that has to maintain competitive prices in a sector in which the winning margins are quickly reduced. AND Tesla cannot change suppliers overnight. It’s not as simple as it seems.
Access to components at a good price is essential for your business model. Therefore, the imposition of high tariffs complicates the sale of vehicles abroad, as well as the production and supply of key parts in the US.
An unfavorable commercial context
Even without taking into account the commercial war, Tesla is already experiencing serious difficulties. On the American market, although it maintains its driving in the segment of electric cars, it has lost the share in front of new competitors.
The value of his shares decreased in the first months of 2025 and a 67% of Americans claim they would not consider buying a Tesla, partially for Musk’s personal controversies.
In Europe, Sales have weakened andEven with the launch Renewed model and “Juniper.” In China, beyond the withdrawal of S and X models, the big challenge is to change consumers’ preferences, which now opt for local brands against foreigners.
Short term, It all indicates that Tesla will focus on its local production in Shanghai and the sale of the most accessible models, Which has a strategic meaning. However, the withdrawal of the S and X model could be the first step in a wider reduction in the presence of the brand in China, if the political and economic situation does not improve.
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Tags: China, Tesla, Elon Musk