Tesla has indeed suspended new orders for its Model S and Model X vehicles in China, as reported by Bloomberg. The change was quietly made at the end of March, with the “Order Now” button removed from both Tesla’s official Chinese website and its WeChat mini program as of Friday. These models are imported and represent Tesla’s more premium lineup.
What’s Behind the Move?
Tesla is facing intensifying competition in China, particularly from BYD, which is seeing explosive growth. In just one month (March), BYD sold 371,419 new energy vehicles, which include both battery electric and plug-in hybrid models — a staggering figure that highlights the pace at which Chinese EV makers are expanding.
This move might indicate:
- Weak demand for Model S and X in China due to their higher price points.
- Tesla possibly reallocating supply or focusing more on its locally produced and higher-volume models like the Model 3 and Model Y, which are built at its Gigafactory in Shanghai.
- A potential refresh or strategic pause for the two models in that market.
At the same time, Tesla is also dealing with regulatory, economic, and competitive pressures in both China and the US. The Chinese EV space is increasingly dominated by local players like BYD, Nio, and Xpeng, which are offering more models with competitive pricing and features tailored to local tastes.
Would you like a quick comparison of Tesla’s situation versus BYD in the Chinese EV market?