48 Comments Tesla has stopped taking orders for its Model S and Model X flagship electric vehicles in China – seemingly in reaction to new tariffs. In China, Tesla produces Model 3 and Model Y vehicles locally at Gigafactory Shanghai for the domestic market and some exports. Model S and Model X are exclusively produced in the US at Tesla’s Fremont factory in California. The automaker imported the vehicles from the US into China. Amid President Trump’s new trade wars, the US is now imposing 145% tariffs on all Chinese goods, and China responded by implementing 84% tariffs on US goods, including vehicles. Advertisement - scroll for more content Update: China has now raised the tariffs on US goods to 125%. This would almost double the cost of US vehicles imported in China, including Tesla’s Model S and Model X. In the middle of the night, Tesla shut down its Model S and Model X online configurations in China – meaning that Chinese customers can’t place new orders for the electric vehicles. This isn’t expected to significantly impact Tesla’s business, considering the automaker delivered just over 2,000 Model S and Model X vehicles in China in 2024. Tesla is still selling what it has in inventory already in China. Still, after a quick inventory check, it appears to have very low new Model S inventory and virtually no Model X. Electrek’s Take One of the first victims of the trade war in the EV space. It kills a relatively small market of about 2,000 vehicles for Tesla in China, but those are profitable vehicles, which is not the case for most vehicles Tesla sells in the country these days.