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Tesla Stops Importing Expensive Models to China as Tariffs Price Them Out


Photo by FMT
Photo by FMT

Summary


  • Tesla halts importing its Model S and Model X vehicles to China due to a sharp increase in tariffs.

  • New Chinese tariffs of 84% on U.S.-made products have made these models too expensive compared to local competitors.

  • Tesla will focus on selling locally made Model Y and Model 3 vehicles from its Shanghai Gigafactory.


 

In a significant shift, Tesla has decided to stop accepting orders for its U.S.-made Model S and Model X vehicles in China, citing an unsustainable rise in import tariffs. This decision follows China’s recent tariff hike, which raised the import duties on American-made products to 84%, placing the luxury electric vehicles out of reach for most Chinese consumers.

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