Tesla commits to promoting 'core socialist values' in pledge with Chinese auto companies
The pledge Tesla made in China includes not engaging in 'abnormal' pricing and prioritizing quality
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Tesla on Thursday reportedly agreed to promote "core socialist values" with over a dozen Chinese car manufacturers.
The Texas-based electric vehicle (EV) and clean energy company run by Elon Musk did so as part of a pledge to the Chinese auto industry, The Wall Street Journal reported.
The four-point pledge reportedly involved agreeing not to engage in "abnormal" pricing, to prioritize quality and not use false publicity. The plege promises to "take on the heavy responsibility of maintaining steady growth, strengthening confidence and preventing risk," according to the outlet.
The signing reportedly took place in Shanghai at a conference.
Close-up of the Tesla Motors logo against a bright blue sky in Pleasanton, Calif, July 23, 2018. (Smith Collection/Gado/Getty Images / Getty Images)
FOX Business reached out to Tesla about the pledge but did not receive a response by the time of publication.
The Journal identified BYD, NIO, XPeng, SAIC Motor, FAW Group and Geely as some of the other signatories. Apart from Tesla, all of them reportedly were Chinese.
The EV market in China has seen a price war as Tesla and some other companies have reduced prices to encourage more sales. That, according to the Journal, has had a particular impact on smaller EV makers, though prices for some brands of cars have since experienced increases.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 357.09 | +11.93 | +3.46% |
The factory Tesla operates in Shanghai had over 93,000 deliveries in June, according to the Journal, which cited the China Passenger Car Association. The company described its Shanghai factory as its "main export hub" in its first-quarter shareholder deck, reporting it had an "installed annual vehicle capacity" of over 750,000.
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Tesla recently started offering its buyers an opportunity to earn extra incentives through referrals from existing customers via a "Refer and Earn" program that is becoming available in markets including the U.S., China, Germany and others.
An aerial view of the Tesla Shanghai Gigafactory June 2, 2023, in Shanghai. (VCG/VCG via Getty Images / Getty Images)
For customers in China, the company said it would give those buying a Model Y or Model 3 a rebate worth $484 with a referral.
Musk, who has been Tesla’s CEO since 2008, went to China in late May, at points getting together with the communist country’s foreign minister and stopping by the Shanghai factory.
CEOs of other American companies have also visited for conferences and various events in recent months, FOX Business previously reported.
Tesla CEO Elon Musk gets in a Tesla as he leaves a hotel in Beijing May 31, 2023. (REUTERS/Tingshu Wang / Reuters Photos)
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Tesla released overall vehicle production and delivery figures earlier in July, with the former coming in at about 479,700 and the latter at roughly 466,100 for the second quarter.
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The value of Tesla shares has risen nearly 154% from the start of the year.
Joe Toppe contributed to this report.