Tech Stock Roundup: Tesla Halts US Model Orders in China, Google Challenges Microsoft, Trump Tariffs Hit Gaming

Key Takeaways

• Tesla has halted new orders for its U.S.-made models in China due to escalating trade tensions.
• Google aggressively courts U.S. federal agencies by offering a 71% discount on Workspace.
• New tariffs imposed by Trump are significantly impacting gaming hardware manufacturers like Sony, Microsoft, and Nintendo.

As trade tensions between the U.S. and China continue escalating, Tesla is caught in the crossfire. New tariffs threaten to impact its operations in one of its key markets.

Meanwhile, in the tech and gaming industries, the ripple effects of these tariffs are already being felt, leading to price hikes, delayed product launches, and shifting strategies.

Further Problems for Tesla

Elon Musk’s Tesla has paused new orders for its U.S.-made Model S and Model X in China as trade tensions escalate under President Donald Trump’s tariff policies.

Tesla is facing rising challenges globally, especially in China, where domestic competitors like BYD are gaining ground.

Bloomberg reported that on April 11, the “order now” option for the two U.S.-built models was removed from Tesla’s Chinese website and WeChat platform.

The move follows China’s latest retaliation in the tariff war, slapping a 145% duty on U.S. vehicle imports. Locally made models such as the Model 3 and Model Y remain available for Chinese consumers.

Tesla hasn’t issued a public statement on the decision.

The suspension adds pressure to an already tough year for Tesla. The company delivered about 337,000 vehicles in Q1 2025, down 13% year-over-year. In Europe, sales plunged 49% in early 2025 compared to last year.

The automaker also faces public backlash tied to Musk’s political ties and recent layoffs, with protests targeting Tesla sites in the U.S. and E.U.

Despite these issues, TSLA stock increased by 5.4% last week, ending positively a turbulent market week.

Google Tries to ‘Steal’ Microsoft Clients

In an aggressive bid to attract new federal clients, Google offers a 71% discount on Workspace through a deal with the U.S. General Services Administration (GSA).

The move challenges Microsoft’s dominance in government software, where its 365 suite has long been the standard.

Announced on April 10 , the limited-time offer gives all federal agencies access to Google Workspace at reduced rates. The GSA said the deal reflects its growing role in centralized government procurement and aligns with ongoing cost-cutting efforts under the Department of Government Efficiency (DOGE).

Though GSA acting Administrator Stephen Ehikian denied a formal DOGE unit exists within the agency, he confirmed coordination with Elon Musk’s efficiency team. The agency emphasized the deal’s goal to “streamline IT acquisition” and secure better pricing for taxpayers.

While Microsoft secured $517 million in federal contracts in 2024, Google brought in just $6 million. Microsoft also holds 93 software authorizations compared to Google’s 14.

Still, as federal agencies look to trim expenses, Google’s offer may prompt some to switch providers. The deal could also allow Google to expand into government cloud services—another competitive battleground with Microsoft.

On the market side, Alphabet’s stock earned 7.9% last week, while Microsoft stock  increased by 8.0%.

Trump Tariffs Hit Gaming Companies

New tariffs imposed by Donald Trump are expected to hit gaming hardware, affecting major console makers like Sony, Microsoft, and Nintendo.

A leading U.S. trade group warns the levies will have a “real and detrimental” impact as import costs from countries like Japan, Vietnam, and China spike.

Nintendo delayed U.S. pre-orders for its upcoming Switch 2, which launches June 5 at $449.99—$150 more than the original. Its flagship title, “Mario Kart World,” will cost $79.99, marking the priciest standard game ever released.

Gaming laptop maker Razer has also paused U.S. sales of its Blade 16, likely due to expected price adjustments. Tariffs of up to 50% now apply to various imports, including a 34% duty on Chinese-made consoles like the PlayStation 5 and Xbox Series X|S.

The Entertainment Software Association warns consoles may face overlapping tariffs due to global supply chains. Once shielded by shifting production to Vietnam, Nintendo is now hit with a 46% tariff.

China retaliated with its 34% import tax, prompting Trump to threaten a further 50% hike, escalating fears of a renewed trade war.

With prices rising, gamers may increasingly turn to cloud services like Xbox Cloud Gaming and PlayStation Plus. A recent GlobalData report predicts the $4B cloud gaming market will balloon to $22B by 2030, offering a more affordable alternative to hardware-heavy gaming.

Sony’s stock earned 8.0% last week, and Nintendo ended up by 8.3%.