Tesla (TSLA) has recently halted new orders for its premium Model S and Model X vehicles on its Chinese website. This move seems to be linked to the high tariffs imposed by U.S. President Donald Trump on China. These trade measures have made it costly to import vehicles like Tesla’s luxury EVs into the country.
Chinese buyers can now only choose from Tesla’s available stock of these premium models. By focusing on inventory sales, the company is likely streamlining its operations and easing the financial pressures caused by these tariffs.
Importantly, CEO Elon Musk had recently said that the steep tariffs imposed by President Trump on China, now raised to 145%, are expected to have a significant impact on Tesla.
Tesla’s China Crossroads
The move comes at a time when Tesla is facing slowing sales in China, driven by intense competition from local electric vehicle manufacturers like BYD (BYDDF), which has been rapidly gaining market share with its cost-effective offerings.
Nevertheless, China remains a key market for Tesla, accounting for a major portion of its global sales. The company has invested heavily in the country, with its Shanghai Gigafactory producing more affordable models, such as the Model 3 and Model Y. This local production will help Tesla avoid import tariffs.
Looking ahead, Tesla’s ability to adapt to the changing global trade scenario will remain key to its success in the world’s largest EV market.
Tesla Launches New Cybertruck Variant in the U.S.
Tesla has launched a new Cybertruck model in the U.S. at $69,990, making it the most affordable among the company’s current Cybertruck offerings.
Deliveries for the new variant are expected to begin in June, with Tesla aiming to cater to a broader audience by offering a more accessible entry point into its electric pickup lineup. This move reflects TSLA’s strategy to diversify its offerings.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 16 Buys, 11 Holds, and 11 Sells assigned in the last three months. At $306.14, the average Tesla price target implies a 21.29% upside potential.
