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.
Tesla’s latest vehicles, including the Cybertruck, Cybercab, and the refreshed Model Y, now feature a front bumper camera. However, as of FSD v13.2.8, the Cybertruck’s bumper camera remains unused for FSD and primarily serves as a helpful tool for parking and off-road driving.
With bumper cameras becoming more common across Tesla’s lineup, the question remains: will they eventually become a necessary component for Unsupervised FSD, or are they simply an added convenience for now?
Actually Smart Summon Needs Bumper Vision
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Every Tesla model that has the ability to use Actually Smart Summon occasionally rolls slightly forward or backward before exiting a parking stall. This movement helps the vehicle get a better view of what’s directly beneath the front lip of the hood before proceeding.
However, this behavior has led some vehicles to make contact with walls or posts, prompting the NHTSA to launch an investigation into Actually Smart Summon. The simple solution is to mount a lower front camera that allows the vehicle to see what’s directly in front of it when it wakes up.
The Cybertruck currently lacks access to Actually Smart Summon—or any Summon functionality, for that matter. Tesla hasn’t announced when the vehicle will receive one of its most advanced autonomy features. Given the vehicle’s height and its larger front blind spot, the delay likely stems from the need to integrate the bumper camera for improved visibility.
At the end of the day, Actually Smart Summon is essential for Unsupervised FSD. A fully autonomous vehicle must be capable of navigating crowded parking lots, reaching pickup points, and parking itself without human intervention.
Training Data and Cameras
We already know that adding a new vehicle to FSD can take months—but what about integrating training data from an entirely new camera and perspective? That process could take even longer, especially with a vehicle like the Cybertruck, which is larger and wider than Tesla’s other models.
We also know that the Cybercab—set to launch in Austin in just a few months—features a bumper camera to improve visibility below the front lip. Tesla doesn’t add new components without purpose; every part, from the camera and wiring to the housing and engineering, represents a calculated investment.
Given this, it’s reasonable to expect that Tesla is already using bumper camera data from the Cybertruck—and soon, the refreshed Model Y—to train an updated FSD model. Whether this model is focused on parking lot navigation and Actually Smart Summon or expands to broader FSD improvements on city streets and highways remains to be seen.
Compute and AI5
Tesla has already stated that the AI4 computer has unused compute power, but they’re running into memory limitations in future FSD builds due to the sheer volume of incoming data. That said, Tesla has hinted at optimizations to better manage memory on AI4.
Would integrating data from an additional camera overwhelm the system? Probably not in terms of compute, but memory efficiency remains a key area for improvement—especially as Tesla plans to triple both the model size and context window in upcoming FSD versions.
On the other hand, the Cybercab is set to launch with its own unique, more powerful AI5 computer. At the We, Robot autonomy event in October, Elon Musk confirmed that AI5 was designed for redundancy and higher safety. Tesla has been working on parallelizing FSD computations for some time—but we’ll explore that in a separate article.
Wrapping it Together
Putting it all together: the bumper camera has arrived, and Tesla doesn’t add hardware without a purpose. While it’s not yet in use for FSD, Tesla is likely gathering footage to train future models. The AI4 computer has the compute power to handle an additional data stream—but will Tesla actually integrate it?
If we were to go out on a limb, we’d say that Unsupervised FSD will likely require a bumper camera to be part of the Robotaxi network, but there’s another compelling reason. Tesla currently offers Supervised FSD for subscription and sale - but you can no longer buy FSD the way it used to be marketed. That changed back in September 2024, when they made adjustments to all their websites globally to list Supervised FSD as the product and feature that was being sold. That could have an impact on Tesla’s future plans with how they offer Unsupervised vs Supervised FSD.
So, will a bumper camera be necessary? We think so. Will it be a retrofit? Possibly. Tesla has already confirmed that they will retrofit HW3 vehicles with improved hardware in the future, meaning that other FSD hardware upgrades aren’t completely off the table.
However, retrofitting a bumper camera is complex, requiring extensive disassembly, wiring through the frunk, firewall, and into the AI computer. It’s possible that the camera will primarily be used for low-speed parking lot maneuvers—where supervision will be required—while Unsupervised FSD will only be available while driving on city streets and highways. The largest issue is simply what happens if the vehicle was asleep, and it can now only leave by driving forward — where it has a large blind spot.
While the exact role of the front bumper camera remains uncertain, its presence in newer models suggests it could be critical for a. fully autonomous vehicle. Whether it becomes a requirement for the vehicle to start driving from a parked position without anyone inside the vehicle, or whether it’ll only be required in parking lots or even to become a part of the Robotaxi network remains to be seen.
Tesla’s latest software update, version 2025.2, brings new features to Service Mode, continuing the trend of improving in-vehicle diagnostics.
Currently, this feature is only available for vehicles with AMD Ryzen infotainment systems and requires Service Mode+, which is a subscription service aimed at technicians. Intel-powered vehicles aren’t supported yet, but we expect this feature to roll out to them as well unless hardware limitations prevent it.
Thanks to Spencer for providing an image of the panel in action.
Signal Viewer Panel
While update 2025.2.6 adds four service mode improvements, including updates to brake burnishing, charge port calibration, and noise recording panel improvements. In this article, we’ll focus on the new signal viewer panel.
This new panel offers a live data feed from selectable vehicle sensors. You select the signals you’re interested in and it’ll plot the signal on a graph. In addition to allowing you to view real-time signal data, it also allows you to record them.
The signals are searchable and can be easily added or removed from the panel. You can track up to 10 sensors, and the UI allows three of them to be viewable at once.
However, this is Service Mode and it’s more than just pretty looks. You can really dig down into these charts. You can pan them left and right through time, and tapping a specific point shows the exact value of that signal. The panel also supports pinch-to-zoom, enabling you to adjust the time scale across all panels simultaneously.
This feature is exclusive to Service Mode+, which requires a subscription to Tesla’s ToolBox3 software and a connection to a computer. It’s designed to help technicians diagnose issues related to signal quality, noise in the vehicle’s electrical systems, and signal variance in components during driving.
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