Tesla, the American electric car manufacturer, has stopped taking new orders for the Model S and Model X on its Chinese website, as both models are manufactured in the United States.
New orders for these models are also no longer available on Tesla’s WeChat mini-program account in China. The American company did not explain the reason, but it comes amid the escalating trade war between China and the United States.
On Friday, China raised its tariffs on US imports to 125%, following President Donald Trump’s decision to raise tariffs on Chinese goods to 145%.
These tariffs significantly increase the retail cost for Chinese consumers, making these cars more expensive than domestically produced electric vehicles.
Tesla is the least affected automaker by Trump’s tariffs, largely because Tesla manufactures its cars in the United States.
Tesla manufactures the Model 3 and Model Y at its Shanghai factory for sale in China and export to markets like Europe, which account for the vast majority of its sales.
Tesla owns factories in both the US and China, allowing it to avoid trade bans imposed on companies in both countries. However, these bans affect some models made in the US or China.
Despite this, the US company can circumvent the new tariffs with less damage than European companies.
