Tesla halts orders for US-made models in China but didn’t sell many there in the first place
Tesla is no longer taking orders in China for the American-made Model S and Model X, but it didn’t sell many of those in the first place.
The vast majority of Teslas sold in China are the Shanghai-made Model 3 and Model Y, accounting for 661,820 of sales there last year while the Model S and Model X represented less than 2,000, or about 0.3% of all China sales. So the impact on Tesla sales there will be minimal.
Instead the move is more symbolic of other problems Tesla is facing in its most important market besides the US. Tesla is dealing with steep competition from Chinese EV brands like BYD, which has pulled ahead of Tesla in both unit sales and revenue. Tesla sales have been falling in China for half a year. A trade war between the US and China certainly isn’t going to help.
Instead the move is more symbolic of other problems Tesla is facing in its most important market besides the US. Tesla is dealing with steep competition from Chinese EV brands like BYD, which has pulled ahead of Tesla in both unit sales and revenue. Tesla sales have been falling in China for half a year. A trade war between the US and China certainly isn’t going to help.
