Less than two days after its signing, the pledge made by 16 automakers, including Tesla Inc. TSLA, to refrain from unsettling the China market with “abnormal prices” has been retracted.
What Happened: The China Association of Auto Manufacturers, that organized the pledge, said in a statement that the clause pertaining to “abnormal price” in the letter of commitment signed by the automakers was inappropriate and violated the spirit of the anti-monopoly law.
The association deleted the said clause from the letter and urged companies to set their own prices, compete fairly and contribute to healthy innovation and development.
Why It Matters: The letter of commitment was signed by 16 automakers including Tesla, BYD Co BYDDY BYDDF, Li Auto LI and Nio NIO, and represented a commitment to fair competition and enhancing core socialist values in the Chinese auto market.
It was aimed at resolving the ongoing price war that has impacted the EV industry since Tesla's price cuts in the Chinese market earlier this year.
However, a day after signing the letter, Tesla announced a reward of 3,500 yuan ($484) for Model Y and Model 3 buyers in the country with a referral. Alongside the reward, Tesla stated on Weibo that buyers will receive 90 days of free access to the company's enhanced autopilot system.
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Read More: Tesla Fans Share Pictures And Videos Of Cybertruck Navigating Snowy Terrain In New Zealand
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