Tesla stops taking orders in China for two models imported from US
a year ago
- #Elon Musk
- #Trade War
- #Tesla
- Tesla has stopped taking orders in China for Model S and Model X imported from the US due to prohibitive tariffs from the US-China trade war.
- Tariffs have made US-imported cars less attractive in China, with total US tariffs on China at 145% and China's tariffs on US exports at 125%.
- Tesla produces Model 3 and Model Y in Shanghai, insulating it somewhat from tariffs, but 40% of its battery material suppliers are Chinese.
- Elon Musk, a key player in the Trump administration, has criticized tariffs, advocating for 'zero tariffs' between the EU and US.
- Tesla warned the US government that tariffs could harm American companies, amid slumping demand and brand tarnishment linked to Musk's association with Trump.
- Analysts suggest Tesla is undervalued despite its $812bn market valuation, but faces a 'full-blown crisis' and needs Musk to leave the Trump administration.