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Tesla halts new orders for Model S and X in China amid market pressures
The suspension applies to two of Tesla’s most expensive imported models, further suggesting a shift in focus or strategy as the company grapples with rising competition and fluctuating demand.
It is to be noted that Tesla’s India entry has been in the works for years, with the company previously lobbying for lower import duties and policy incentives.
Tesla has stopped accepting new orders for its premium Model S and Model X vehicles on its Chinese website, as well as through its WeChat mini programme, according to checks by Reuters. The move, which comes without an official explanation from the company, marks another sign of the U.S. automaker’s mounting challenges in its second-largest market.
The suspension applies to two of Tesla’s most expensive imported models, further suggesting a shift in focus or strategy as the company grapples with rising competition and fluctuating demand.
The development follows disappointing March sales figures in China, where Tesla delivered 78,828 vehicles—down 11.5% year-on-year. While this marked a strong recovery from February’s tally of 30,688 units, it still underlines the pressure Tesla faces from domestic rivals, especially BYD. The Chinese EV giant posted sales of 371,419 new energy vehicles in March, continuing to widen the gap.
Tesla’s struggles aren’t confined to China. In the U.S., the company saw a 13% year-on-year drop in sales—the steepest in three years. Industry analysts have pointed to a mix of competitive dynamics, waning consumer interest, and reputational headwinds. Elon Musk’s controversial appointment as the head of the Department of Government Efficiency (DOGE), along with his vocal backing of U.S. President Donald Trump, has also drawn scrutiny and may be affecting brand perception.
As of now, Tesla has not provided a comment or clarification on the order suspension in China.
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