Tesla stops selling U.S.-made models in China

Tesla is no longer taking orders for its Model S and Model X electric vehicles in China, Reuters reports.

However, Elon Musk's EV company is still selling other Tesla models in China. So, why remove those specific vehicles from Tesla's website in China?

While Tesla has not provided an official reason, both the Model S and Model X are made in the United States.

Amid President Donald Trump's trade war with China, it appears Trump's "special government employee" Elon Musk has been caught in the crossfire. On Friday morning, China announced it would raise its tariff on U.S. goods to 125 percent in retaliation for the 145 levy Trump has placed on goods from China. The tariff on U.S. goods will go into effect on Saturday, April 12, Bloomberg reports.

Last year, China imported 1,553 Model X cars and 311 Model S cars, according to a China Auto Dealers Association analyst. As Reuters reports, these two models account for less than 0.5 percent of the more than 657,000 Tesla deliveries in 2024. Tesla's Model 3 and Model Y vehicles are made in China and are sold both within the country and exported to European markets, among others. While the Model S and Model X are less popular in China, this development only adds to Tesla's many problems.

Musk's EV car company is currently experiencing sales problems around the world. A March report found that Tesla sales were down in Germany by a whopping 76 percent. Tesla sales in Australia have dropped by nearly 72 percent. Meanwhile, the European Automobile Manufacturers' Association found that Tesla vehicle registrations across the EU dropped by 45 percent last year overall.

Some of Tesla's current customers are rejecting Musk's company as well. Tesla owners looking to give up their vehicles have pushed Tesla trade-ins to record highs. In fact, Tesla trade-ins are becoming so prominent that the company is reportedly turning away customers looking to trade-in their Cybertrucks. 

At the same time, used Tesla prices have fallen significantly as Tesla owners look to get rid of their ties to Musk through Tesla.

When it comes to the EV market in China, specifically, Tesla is also facing its strongest competition yet in the Chinese carmaker BYD, which is now selling more hybrid and EV vehicles than Tesla.

Keep checking Mashable for our latest tariff news and explainers, from delayed Nintendo Switch 2 preorders to reports of iPhone 16 panic buying.