Tesla

The China Association of Auto Manufacturers (CAAM) has withdrawn a commitment to avoid "abnormal pricing" that was signed by 16 automakers, including Tesla, Nio, Li Auto, and Xpeng. The pledge, which had been viewed by some as a ceasefire in a price war threatening profitability across the industry, was retracted after CAAM recognized it violated China's antitrust law. The day before the retraction, Tesla unveiled a global program offering additional incentives to buyers through referrals from existing customers, a long-standing tactic used by traditional automakers to increase sales. CAAM plans to encourage its member companies, including the 16 signatories, to adhere to the antitrust law and engage in fair competition with independent pricing.

Community sentiment seems to reflect a mixture of skepticism and humor over the brief lifespan of the agreement, with some suggesting that it was a political move, or that Tesla would have disregarded it anyway. Other discussions highlight the challenge of price competition in China's EV market, where sub-$10,000 vehicles are common.