Tesla paused shipping Cybercab and Semi truck parts from China to the U.S. High trade tensions drove U.S. tariffs on Chinese goods to 145%. The cost became too steep for Tesla to keep going.
Logistics hit hard
Tesla could deal with a 34% tariff. But tariffs rose fast. On April 9, 2025, they hit 84%. Then they climbed to 125% and later 145%. These jumps threw Tesla’s supply chain off track.
Tesla planned to test Cybercab production in Texas and Semi production in Nevada by October 2025. Full production was set for 2026. These delays might slow down Tesla’s robotaxi plans.
Trade war heats up
The U.S. and China are locked in a tough trade fight. China slapped 125% tariffs on U.S. goods after the U.S. raised its own. Tesla stopped taking new orders for Model S and Model X in China. These cars, made in Fremont, California, can’t be ordered new on Tesla’s Chinese website. Some stock is still available.
Data from the IndexBox Market Intelligence Platform shows 15%-20% of U.S. auto parts by value come from China. These tariffs could hurt other carmakers and industries tied to Chinese supplies.
Tesla has pushed to get more parts from North America for its U.S. plants over the last two years. But the tariff spikes moved faster than Tesla’s efforts.
Elon Musk weighs in
Elon Musk spoke out on tariffs. In an X post, he said they put a “significant” cost burden on Tesla, especially for batteries from China. Musk backs free trade, but these policies make things tough for Tesla, even with his links to some U.S. policy moves.
China’s market pressures
Tesla faces stiff competition in China from firms like BYD. In 2024, China imported just 1,553 Model X and 311 Model S vehicles. That’s less than 0.5% of Tesla’s global deliveries of over 657,000, per Li Yanwei from the China Auto Dealers Association, cited by Reuters. The small market for these imports may limit the financial sting of halting orders. But delays in Cybercab and Semi production could hit harder.
Tesla’s premium sedan and SUV sales, including the Cybertruck, dropped 25% in early 2025.
There is no information on how long Tesla will pause shipments or how they will fix this. Tesla could ramp up local part production, find new suppliers outside China, or push for tariff relief.
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