Price War Truce Between Tesla and Chinese Automakers Withdrawn Over Antitrust Concerns

Tesla and other Chinese EV automakers tried to put an end to the price war

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Several days ago Tesla and 16 Chinese automakers declared a truce in their long-standing price wars. The pact, designed to stabilize the largest EV market in the world, was signed at the China Association of Automobile Manufacturers (CAAM) in Shanghai.

A Unifying Pact: No More Price Disruptions

The “letter of acceptance for maintaining fair market order in the automobile industry” encompassed four essential commitments from the automakers, with the key one being to stop disrupting the competitive market order with abnormal pricing.

The agreement was signed by some of the biggest players in the Chinese domestic market, including Tesla, BYD, Nio, Li Auto, Xpeng, China FAW, Dongfeng Motor, SAIC, Changan Automobile, BAIC, GAC, China National Heavy Duty Truck, Chery, JAC, Geely, and Great Wall Motor.

Although the agreement was self-regulated and not legally binding, its significance could not be understated.

Sources from the Ministry of Industry and Information Technology asserted that regulating promotional activities, including avoiding reckless price cuts, is necessary for the health and growth of the Chinese auto industry.

This move appeared to signal the end to the price war, which had led to uncertainties in the market and delayed expansion plans, such as Tesla's Giga Shanghai expansion.

An Unexpected U-Turn: The Withdrawal of the Price Pledge

However, the CAAM has decided to retract the pledge made by the 16 automakers to refrain from "abnormal pricing."

The pledge, carefully coordinated by CAAM, was viewed as a ceasefire in the heated price war that had been affecting the profitability of the EV industry. The aim was to promote stability and healthy competition in the market.

Tesla's Move: A Sales-Boosting Strategy

Complicating the situation further, Tesla unveiled a global program on Friday. The program offers additional incentives to potential buyers through referrals from existing customers, a sales strategy long employed by traditional automakers.

While this move could be viewed as a savvy business decision aimed at boosting sales, it comes at a time when the EV industry in China was moving towards maintaining a fair market order. This has raised questions about whether Tesla's new initiative could reignite the pricing wars and undermine the market's stability.

CAAM's Response: Fostering Fair Competition and Independent Pricing

Reacting to this development, CAAM posted a statement on its website on Saturday, acknowledging that the pricing pledge had infringed upon China's antitrust law. As a result, it decided to withdraw the pledge from a list of commitments that the automakers had initially signed under the guidance of an official from the Ministry of Industry and Information Technology.

Despite the withdrawal, CAAM has stated that it will continue to encourage the 16 companies and other association members to strictly adhere to the antitrust law and engage in fair competition through independent pricing. This raises the question of what the future will look like for the EV market, not only in China but worldwide, as industry leaders navigate the complexities of pricing, competition, and market stability.

A New Era in the EV Industry

This development underlines the complexity of the global EV market. It also stresses the delicate balancing act required between ensuring market competitiveness, upholding antitrust laws, and creating a stable and sustainable industry that benefits consumers, manufacturers, and the wider society.

The unexpected withdrawal of the pledge, coupled with Tesla's new referral program, may redefine the landscape of the EV industry. As we progress, watching how automakers balance competitive pricing and maintaining market order will be intriguing.

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Tesla FSD V13.2.2 Arrives With Holiday Update Features; Rolling out to HW4 Models

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FSD users can now join in the Holiday revelry, as FSDS V13.2.2 has started rolling out to customers, and it includes all the 2024 Telsa Holiday Update features.

Tesla’s VP of AI - Ashok Elluswamy, previously mentioned that the Holiday Update would be making its way to FSD users sometime this week. Ashok’s timelines have been right on point. All models with AI4/HW4 vehicles in North America are starting to receive the updated FSD release alongside all the features of the Holiday update.

This new build is update 2024.45.25.5, which should make its way throughout the fleet over the week.

Holiday Highlights

The Holiday update has a ton of new features in it, including new app features like Apple Watch support, the Dashcam and Sentry Mode Viewer and the ability to start Light Shows.

We also received rear cross-traffic alerts, while navigation received Search Along Route, Arrival Energy at Destination and Weather at Destination, and Precipitation Maps.

On the entertainment side, the Holiday Update brings the SiriusXM streaming app to the Model 3, Model Y, and Cybertruck, as well as an updated TuneIn player. Of course, there are new Cybertruck-specific features such as custom Cybertruck Wraps (don’t worry it’s coming to all models), a new Cyber Santa Mode, and Santa and Rainbow Road ambient lighting support.

Video of FSD V13.2.2

Here is our first look at FSD V13.2.2. While the release notes don’t point out any new features for FSD, it’s expected to include several unknown fixes and improvements.

Here is highlight clip #1 from my FSD Supervised v13.2.2 First Impressions Drive on the AI4 Model Y. This was an amazing example of EGO getting itself out of a bad situation very quickly. Bravo @Tesla_AI pic.twitter.com/gogzNswiTq

— Chuck Cook (@chazman) December 21, 2024

Already on the Holiday Update?

If you’re already on Tesla’s Holiday update, version 2024.44.25.2, and you have a HW4 vehicle, then this version now qualifies you to receive FSD V13.2. We expect all HW4 vehicles with FSD to migrate to this version in the coming week or two.

If you have HW3, then look out for a future update, including FSD v12.6.

FSD V12.6 for HW3 Soon

For Hardware 3 owners, FSD V12.6 is also right around the corner - it should be launching no later than the end of the year, according to Ashok. We’re expecting the new tech stack for highway driving, the updated speed profiles, including Hurry Mode, as well as improvements from V12.5.6 to land for HW3 soon.

If you’re excited about that, go read our in-depth look at V12.5.6 to see a preview of what you’ll be getting in V12.6.

We’re looking forward to seeing the demo drives of V13.2.2 from some of our usual influencers, but the good news is the update has already started rolling out to the general public, so expect larger waves soon.

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Tesla Referral Code - Get Up to $2,000 Off a New Tesla

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If you’re planning to buy a new Tesla, consider using our referral code. Not only will you receive up to $2,000 off your vehicle, but you’ll help support our site.

Plus, if you take delivery by December 31st, you’ll also get 3 months of free Supercharging and Full Self-Driving (FSD).

Discount Per Model

• Model Y - $1,000 off

• Model 3 - $1,500 off

• Model S, Model X or Cybertruck - $2,000 off

Free Supercharging and FSD

You must take delivery by December 31st, 2024 to qualify for the three months of FSD and free Supercharging. It’s not clear whether Tesla will offer these benefits starting January 1st.

Referral Codes

All referral codes will give you the same benefits. However, each one is limited to 10 uses, so if one hits the limit, try another one.

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