Price War Truce Between Tesla and Chinese Automakers Withdrawn Over Antitrust Concerns

July 10, 2023

By Kevin Armstrong

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

Not a Tesla App

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.

Tesla App Adds Visual Interface for Selecting Areas That Need Attention

November 5, 2024

By Karan Singh

Not a Tesla App

As part of a recent update to the Tesla App, Tesla has added some slick new user interfaces to the Service and Roadside sections of the app. These new interfaces allow you to easily select the areas that are damaged or need attention.

These new screens in the service and roadside menus have been available in North America since at least late August, but appear to be rolling out to more users.

For now, it also appears to be restricted to the Model 3 (both original and 2024 Highland refresh), as well as the Model Y. The Model S and X, both redesigned or legacy - do not appear to have this new service menu just yet. The Cybertruck is the same - no unique service menu for it just yet, either.

Exterior Select Screen

In order to see this new screen, you can open up your Model 3 or Model Y’s service menu in the Tesla app. From there, you can select “Exterior” as the area of concern. Once there, you’ll be greeted with a short tutorial that will show you through the new interface.

Instead of having to type your areas of concern which could be ambiguous, this new interface makes it easy to select the affected areas. Just swipe left/right to view the car from different angles and tap the area that needs service.

Areas you select become highlighted in blue, and once you’re done selecting all of them, you can provide notes to each particular area. You can even select areas under the vehicle, like the front aero shield or center skid plate.

While most glass is selectable here, the windshield and top glass areas are a separate option in the service menu under Collision and Glass > Glass & Windows. However, windshield wipers in the second last visualization - Top.

Tire Select Screen

The Tire/Wheel Select Menu

Not a Tesla App

Similar to the Exterior and Glass screens, you can open the service menu and then select Tires & Wheels as your area of concern. You’ll have two sets of options here.

You can either go to Wheels > Wheel Damage; or Tires > Replacement Tires. Here, you’ll be able to identify specific wheels or tires for service as required.

The app's roadside section offers a similar tire view, which lets you select which tire is flat.

Thanks to its app and mobile service, Tesla has been providing one of the best service experiences in the industry. While they still have work to do regarding part availability and reasonable wait times, their technology and simplicity continue to impress. We’re excited to see what improvements they’ll make next.

Tesla and Uber Partner for Another Discount Off New Vehicles

November 4, 2024

By Karan Singh

Not a Tesla App

Tesla and Uber are partnering to offer a new discount for Uber drivers. The offer is similar to one that was offered earlier in the year. Uber and Tesla previously offered a $2,000 USD purchase incentive under a special Uber referral code. That offer ended in March, and Tesla is now offering a new, similar offer.

Both the previous incentive as well as this new offer are only available in the United States.

Offer Conditions

The new offer is simple: If you’re an Uber Driver, you’ll be able to get $1,000 in Tesla credits upon taking delivery and another $1,000 in Uber Cash after completing 100 rideshare trips. You’ll need to purchase either a new Model 3 or Model Y—any variant, including the Performance versions, is acceptable. The program is not available for used or demo vehicles.

For anyone interested in trying out being an Uber driver, this is also a nice way to get $2,000 off a new Tesla. While the discount is no longer a purchase incentive, you can use the $1,000 in Tesla credits towards accessories, service, Supercharging, swag, or another vehicle. The Uber Cash, on the other hand, will be paid out alongside your 100th trip.

The offer is combinable with the Military Purchase Program, but you can’t use the Tesla referral program to get $500 off. If you’ve already got referral credits, though, you can use them toward the purchase of the vehicle.

Finally, you’ll need to take delivery before the end of the year (December 31st) and complete your 100th trip before February 15, 2025.

How to Use It

To take advantage of the offer, go to Tesla’s Uber page and log in via Uber. Both companies will verify that you’re eligible for the discount. You’ll also have to be in good standing as an Uber driver - if you’re not, no discount.

It's interesting to see Tesla and Uber partner so closely, given that Tesla’s Robotaxi service will become a direct competitor to Uber. Tesla also recently launched the Trip Navigation and Battery Awareness feature for Uber drivers.