Tesla Halts Sales of Model S and X in China as Tariffs Take a Toll

Tesla is facing the consequences of President Trump’s tariff strategy. While the company’s U.S. business is somewhat cushioned from import tariffs because it is more vertically integrated than other carmakers, Tesla’s business elsewhere faces retaliatory tariffs on imports of its cars. Bloomberg first reported that Tesla has stopped taking orders for its high-end Model S and Model X vehicles in China because the company imports those into the market. Tesla produces the more affordable Model 3 and Model Y vehicles in China at its Shanghai Gigafactory, meaning they are not impacted by China’s 125% tariffs implemented in the ongoing tit-for-tat trade war. Fortunately for Tesla, the Model S and Model X are some of its least-popular vehicles by a wide mile, so the loss of sales of those in China may not have a material impact. It is still offering S and X vehicles that are already in inventory in the country. Being so close to President Trump has been something of a double-edged sword fo ... Read full article.