Tesla commits to promoting ‘core socialist values’ in pledge with Chinese auto companies

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.

TESLA’S ELON MUSK MEETS CHINA’S FOREIGN MINISTER, SAYS HE IS OPEN TO EXPANDING BUSINESS IN COUNTRY: OFFICIAL

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.

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.

TESLA DEBUTS CUSTOMER REFERRAL IN EV WAR’S NEXT MOVE

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.

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 SHARES SPIKE AS PRICE CUTS BOOST RECORD CAR DELIVERIES

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.

The value of Tesla shares has risen nearly 154% from the start of the year.

Joe Toppe contributed to this report.