Another change to Tesla‘s lineup is not likely to make a big impact.
What’s happening?
The flagging electric vehicle manufacturer is no longer taking new orders for the Model S and Model X in China, Teslarati reported. The new Model 3 and Model Y are available, and there is inventory remaining of the other automobiles.
«It should be noted that while Tesla operates Gigafactory Shanghai in China, the facility only produces the company’s two mass market cars, the Model 3 and the Model Y,» Teslarati stated. «Model S and Model X units are still imported from the United States, making them substantially more expensive than their locally produced siblings.»
The company’s sales are rebounding after significant falls that coincided with criticism of CEO Elon Musk’s role in U.S. government spending cuts as the head of the so-called Department of Government Efficiency. This change may have to do with the Trump administration’s tariff war, as China upped its tax on U.S. imports to 125%, as Teslarati noted. The United States’ toll on Chinese imports is 145%.
Why is this important?
In March, the Model Y was China’s best-selling vehicle. Tesla’s sales were down 21.8% in the first quarter of 2025 compared to the first quarter of 2024, however.
«While the pause in Model S and Model X sales in China is unfortunate, the unavailability of the two flagship vehicles in the country will likely not affect Tesla’s delivery numbers this year,» according to Teslarati. «As per Li Yanwei, an analyst with the China Auto Dealers Association, Tesla China only imported 1,553 Model X and 311 Model S in 2024.»
This amounted to under 0.5% of the company’s sales in the country.
EVs are rising in popularity as they become more affordable and reach price parity with gas-powered vehicles. They help drivers save $1,500 annually on gas and maintenance and produce zero tailpipe pollution, helping to mitigate the effects of rising global temperatures that are driven by the burning of dirty energy sources, such as gas, oil, and coal.
What’s being done about Tesla sales?
As noted, this change is unlikely to affect Tesla sales in a big way. The company is also continuing to update its offerings, though it has come back to the pack since its days as the most innovative EV maker in the market.
An absence of longtime leaders, however, may keep it from reaching those heights again.
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