Tesla has stopped taking orders for its Model S and Model X flagship electric vehicles in China – seemingly in reaction to new tariffs.

In China, Tesla produces Model 3 and Model Y vehicles locally at Gigafactory Shanghai for the domestic market and some exports.

Model S and Model X are exclusively produced in the US at Tesla’s Fremont factory in California. The automaker imported the vehicles from the US into China.

Amid President Trump’s new trade wars, the US is now imposing 145% tariffs on all Chinese goods, and China responded by implementing 84% tariffs on US goods, including vehicles.

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This would almost double the cost of US vehicles imported in China, including Tesla’s Model S and Model X.

In the middle of the night, Tesla shut down its Model S and Model X online configurations in China – meaning that Chinese customers can’t place new orders for the electric vehicles.

This isn’t expected to significantly impact Tesla’s business, considering the automaker delivered just over 2,000 Model S and Model X vehicles in China in 2024.

Tesla is still selling what it has in inventory already in China. Still, after a quick inventory check, it appears to have very low new Model S inventory and virtually no Model X.

Electrek’s Take

One of the first victims of the trade war in the EV space. It kills a relatively small market of about 2,000 vehicles for Tesla in China, but those are profitable vehicles, which is not the case for most vehicles Tesla sells in the country these days.

90% of the vehicles Tesla delivers in China are Model 3 and Model Y RWD, which are low-margin vehicles that Tesla has to subsidize 0% financing on to move. It results in the automaker making little to no profit on those vehicles.

In the case of Model S/X in China, we are only talking about roughly $170 million in potential lost revenue for Tesla, but at least the company was making some profits on those.

As we previously reported, Tesla’s biggest concerns amid this trade war are the tariffs on Chinese battery cells entering the US, which support its Megapack and Powerwall energy business, and Chinese buyers turning away from American brands.

If the trade war with China escalates even more, Tesla could even start worrying about the status of its factory in Shanghai, which is a rare auto factory wholly owned by a foreign automaker in China.

Lucid Motors has announced that it acquired some of Nikola Motor’s assets out of its bankruptcy, including its factory, and it will offer jobs to over 300 of its employees.

Nikola, a manufacturer of electric and hydrogen trucks, went bankrupt earlier this year after several tumultuous years.

Now, Lucid Motors, an electric vehicle manufacturer, has announced that it purchased some of Nikola’s assets out of a bankruptcy auction.

The company wrote in a press release:

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Lucid Group, Inc. (Nasdaq: LCID), maker of the world’s most advanced electric vehicles, today announced it has reached an agreement to acquire select facilities and assets in Arizona previously belonging to Nikola Corporation, subject to approval by the U.S. Bankruptcy Court for the District of Delaware. The transaction does not include the acquisition of Nikola’s business, customer base, or technology related to Nikola’s hydrogen fuel cell electric trucks.

In Arizona, Lucid’s Casa Grande factory, where it produces the Air and Gravity EVs, is only about 25 minutes away from Nikola’s Coolidge factory, where it used to assemble its trucks.

Lucid confirmed that it is taking over this facility and Nikola’s headquarters in nearby Phoenix:

As part of the agreement, Lucid will take over Nikola’s former Coolidge manufacturing facility (680 E Houser Rd, Coolidge, AZ), as well as the Phoenix facility (4141 E Broadway Rd, Phoenix, AZ) previously used as Nikola’s headquarters and product development center. These buildings collectively add more than 884,000 square feet to Lucid’s Arizona footprint. Most of this space is comprised of state-of-the-art manufacturing and warehousing buildings, which executes against Lucid’s prior planned expansion in Arizona. These facilities also include development equipment with extensive battery and environmental testing chambers, a full-size chassis dynamometer, machining equipment, and more.

The deal is valued at $30 million in cash and non-cash considerations.

As it takes over those facilities, Lucid plans to offer “more than 300 former Nikola employees” jobs in Arizona:

Additionally, Lucid plans to offer employment to more than 300 former Nikola employees in roles across Lucid’s Arizona facilities. These offers will encompass various technical salaried and hourly positions including manufacturing engineering, software, assembly, vehicle testing, and warehouse support as Lucid welcomes employees with strong backgrounds in EV technology and further supports its local community.

Marc Winterhoff, Interim CEO at Lucid, commented on the announcement and hinted that the new facilities and workforce would help Lucid toward bringing its next vehicle platform to production:

“As we continue our production ramp of Lucid Gravity and prepare for our upcoming midsize platform vehicles, acquiring these assets is an opportunity to strategically expand our manufacturing, warehousing, testing, and development facilities while supporting our local Arizona community. We are delighted to extend employment offers to more than 300 former employees, who bring valuable industry experience, and together with our outstanding teams, will continue powering Lucid’s industry-leading innovation.”

Lucid is mainly known for the Air, a super-efficient and long-range electric luxury sedan, and it recently launched the Gravity, an SUV based on the same platform.

Now, it plans to develop a new vehicle platform to deliver smaller and cheaper vehicles.

Electrek’s Take

This makes sense. While Lucid has a lot of operations in California, they were neighbors in Arizona when it came to manufacturing operations.

It may be able to utilize some of Nikola’s manufacturing equipment and quickly put the former Nikola workers to work, reducing the bankruptcy’s impact on local employment.

Lucid has its own financial problems as it’s not yet profitable and relies on raising more capital, but it is undoubtedly in a much more solid financial situation than Nikola has been over the last few years.

Also, $30 million in cash and non-cash considerations is pretty cheap.

Tesla has officially launched a new version of the Cybertruck RWD for $70,000 in the US and Mexico.

It’s more expensive than previously announced and loses a ton of features, but it has more range.

Earlier today, we reported on Tesla unveiling in the Middle East a new ‘Cybertruck Long Range’.

The automaker confirmed that it had a single rear-wheel-drive (RWD) motor, but unlike the previously announced Cybertruck RWD, Tesla said it had 350 rather than 250 miles of range.

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This would point to having the same battery pack as the Dual Motor and Cyberbeast currently available.

At the time, it wasn’t clear if Tesla was launching this specific version for the Middle East or if it was the new Cybertruck RWD to replace the previously announced $62,000 version.

Now, Tesla has opened orders in the online configurator for the US and Mexico of the new Cybertruck Long Range RWD:

It starts at $70,000 before incentive – $9,000 more than the previously announced Cybertruck, but it has 100 more miles on a single charge at 350 miles.

It’s also $10,000 less expensive than the Cybertruck Dual Motor.

You not only lose a motor, but you also lose the powered tonneau. You can buy a “soft tonneau” for $750 and it increases the range to 362 miles:

The new cheaper version also loses the adaptive suspension, the lightbar at the back, the rear screen, and even the bed outlets, according to Tesla’s website.

Tesla says that deliveries are going to start in June.

Electrek’s Take

I might be wrong, but I would assume that the previously announced $61,000 Cybertruck is not going to happen. The Cybertruck is likely proving to be too low-volume to warrant producing different sizes of battery packs.

However, this version might be just to make the $80,000 Cybertruck look better.

It’s not to lose the AWD, the tonneau, the adaptive suspension, and even the bed outlets for $10,000.

These are all pretty essential features of the Cybertruck. I don’t think this version will sell much at $70,000. Maybe they get a few sales of people trying to take advantage of the $7,500 tax credit.