Without fanfare, Tesla removed the Model S and Model X order pages from its Chinese website. Instead: almost nothing. Only a few cars in stock remain available, such as a white Model S listed at over $100,000.
Sedans that are no longer popular
Officially, the manufacturer is saying nothing. But this withdrawal comes at a time when trade relations between Beijing and Washington are becoming even more strained. China has decided to increase taxes on American cars to 125%, in retaliation for the measures decided by Donald Trump. Result: importing an American vehicle simply becomes prohibitively expensive.
Since the Model S and X are manufactured in California, they bear the brunt of this barrage of surcharges. Conversely, the Model 3 and Model Y, produced locally in the Shanghai factory, escape these increases. And it is precisely these two models that represent the overwhelming majority of Tesla sales in China.
The Model S and X, despite several tweaks over the years, remain expensive vehicles to manufacture. Although their design has been modernized, their architecture is more than ten years old. And their price, which starts around $80,000, clearly doesn't work in their favor in an ultra-competitive Chinese market where consumers are increasingly focusing on value for money.
Even high-end buyers are now turning to local brands like Nio or Li Auto, which offer advanced technologies and careful manufacturing at a more aggressive price. For Tesla, continuing to push these models in such a context no longer made much sense.
And even without this blow, the Model S and X already had little weight. In 2024, Tesla sold fewer than 2,000 units in China. Meanwhile, the Model 3 and Model Y have exceeded 660,000 sales. And the trend is not about to reverse.
Tesla's Shanghai factory is running at a slow pace: six months of decline in a row, -22% in the first quarter. The manufacturer is trying to remain competitive with promotions, but facing BYD, the local giant, it's complicated. BYD dominates the market and attracts more Chinese customers with models that are often better equipped and more affordable.
In the rest of the world, too, the Model S and X are losing ground. Tesla has already withdrawn from several markets, such as the United Kingdom, Japan, and Australia. And even in the United States, these cars, which were iconic a few years ago, are now relegated to the background.
Tesla therefore seems to be turning the page on its old luxury models, in favor of more accessible cars... and less exposed to political tensions.
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