Trump tariffs backfire on Elon Musk, as Tesla pulls U.S.-built models from China

• Tesla stopped taking orders for the S and Model X model in ChinaThat is now facing the import duties of 125 % revenge imposed by Beijing. Local clients can only choose from new cars that are still present in the galleries throughout the country. Fortunately, it is not in the high demand, so the damage to the minimum tested.

The Trump administration’s trade war with China led to the opposite results of president Elon Musk’s advisor when Tesla had to withdraw two cars from its largest growth market.

Its electric car factory is no longer accepting orders of excellent sedan cars and Crombling Model X Crossover. Both were built exclusively in California to export all over the world, the duo is subject to the new import message of 125 % on American goods with revenge for Trump’s punitive tariff imposed this week.

The sales of the two models are now possible only from the inventory of vehicles already shipped from the Fremont factory near San Francisco to Chinese galleries throughout the country.

The decision comes at a time when Trump, whom Mossk supported in the elections by more than a quarter of a billion dollars, ignited a trade war with the entire world that caused the market tank. On Wednesday, Trump retreated after his new system of punitive definitions was not valid for a few hours, and he blamed the “Yippy” markets.

But he firmly occupied China’s tariff, and Beijing has now responded.

Tesla depends almost exclusively on the Shanghai Factory for the Chinese market

Fortunately for investors, damage is minimal. Current estimates indicate that more than 2000 S and X units are at risk, which is slightly more than one percent of the annual global Tesla size.

For anyone, Tesla does not depend on exports to China for its work. It is very similar to other foreign brands that are one of the main players in China, the bulk of its sales comes from the vehicles that were built and locally built. In the case of Tesla, you build the Y and 3 Form at the Shanghai Factory.

Car makers usually issue specialized models to China, which compete in very small parts for the additional costs to create a second collection line, even in the market, which cannot be economically justified.

This is evenly equal to leading luxury cars such as BMW 7 Series and Mercedes-Benz S-Class in addition to Musk’s Model S and X.

Second, the Tesla duo at this stage are very old, barely treated in its works compared to the latest 3 and Model Y. For example, S has been largely sold since 2012, except for design modifications often very few so that the average man cannot discover.

Tesla did not respond toluckRequest to comment.

This story was originally shown on Fortune.com

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2025-04-11 18:18:00