Is Tesla phasing out Model S and X in China?

Tesla Inc has stopped accepting new orders for its Model S and Model X vehicles in China, according to updates on the company’s Chinese website and its WeChat mini program. The move was first noted by Reuters, though Tesla has yet to provide any official explanation.

The order suspension affects both models, which are imported from Tesla’s Fremont facility in California. These vehicles had only recently returned to the Chinese market in early 2023, following a break in deliveries that began in late 2020.

While the company has remained silent on the reasons behind the halt, industry analysts believe the decision could stem from “internal production shifts” or a “broader strategic realignment”. The Model S and X account for a relatively small portion of Tesla’s global deliveries, and the automaker may be reallocating capacity to support higher-demand models.

So far, there is no word on when or if Tesla will reopen orders for these premium vehicles in China.

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In contrast, the company’s Shanghai Gigafactory continues uninterrupted production of the more affordable vehicles such as Model 3 and Model Y. These models remain central to Tesla’s strategy in China, where demand for mid-range electric vehicles has surged amid intensifying competition in the EV space.

Analysts suggest that Tesla is sharpening its focus on models that cater to a wider customer base, especially in a price-sensitive market like China. The company has also been adjusting prices and streamlining its global lineup in recent months as part of its broader growth and cost-efficiency efforts.