April 12, 2025 | 10:16 am
TEMPO.CO, Jakarta - Chinese consumers have halted orders for Tesla’s electric vehicles, the company founded by tech mogul Elon Musk. As of Friday, April 11, 2025, Tesla has stopped accepting new orders for its Model S and Model X on its Chinese website.
According to Channel News Asia and CNN, the move comes amid rising tensions in the U.S.-China trade war. U.S. President Donald Trump has raised tariffs on Chinese imports to 145 percent, prompting China to retaliate with a 125 percent tariff on U.S. goods.
Both models are made in the United States and imported to China. New orders for these models are no longer available on the manufacturer's mini WeChat program account in China. However, consumers can still order the Model 3 and Model Y in China.
The main difference is that these vehicles are made at Tesla's Gigafactory in Shanghai. They are much more popular in China, which is the world's largest car market. Tesla's S and X series are mostly produced in the U.S. and have always been niche vehicles in the Chinese market.
There have been no comments from Tesla or Elon Musk regarding the cancellation of these electric car orders.
The high import tariffs from the U.S. have increased retail costs for Chinese consumers. As a result, the production cost of Tesla electric cars will be higher compared to similar products made in China.
Throughout 2024, the number of Tesla Model X imports to China reached 1,553 units, and 311 units of the Model S. Both models contributed to less than 0.5 percent of Tesla's total shipments, which amounted to more than 657,000 vehicles last year.
To anticipate a worsening of sales in China, Tesla is expanding its reach by targeting the Saudi Arabian market. As quoted from CNBC, Tesla will start its debut sales in Saudi Arabia, the oil-rich kingdom. Previously, Tesla had already entered the United Arab Emirates market.
Following the imposition of import tariffs by Trump on several countries, Tesla's sales are at risk of decline. Elon Musk's presence in the Trump administration has also triggered negative sentiments.
In addition to Tesla, the electric car company BYD is also targeting the Middle East market. BYD has already entered the Saudi Arabian market, posing competition for Tesla from BYD and Lucid Motors in a still small market.
Electric vehicles only accounted for 1 percent of all car sales in Saudi Arabia in 2024, according to a report from the consulting firm PwC.
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