Tesla, the Texas-based electric vehicle (EV) and clean energy company led by Elon Musk, has reportedly agreed to promote “core socialist values” as part of a pledge to the Chinese auto industry. The pledge, a four-point commitment agreed upon with over a dozen Chinese car manufacturers, involved promising not to engage in “abnormal” pricing, to prioritize quality, and not use false publicity.
The pledge signifies Tesla’s commitment to “take on the heavy responsibility of maintaining steady growth, strengthening confidence and preventing risk,” according to The Wall Street Journal. Other signatories to the pledge reportedly included Chinese car manufacturers BYD, NIO, XPeng, SAIC Motor, FAW Group, and Geely.
This move comes at a time when the EV market in China has been grappling with a price war. Tesla, among other companies, has reduced prices to stimulate more sales, impacting smaller EV makers in particular.
In June, Tesla’s Shanghai factory, which the company describes as its “main export hub,” reported over 93,000 deliveries. The company’s first-quarter shareholder deck reported an “installed annual vehicle capacity” of over 750,000 at this factory.
In addition, Tesla has recently launched a “Refer and Earn” program in several markets including the U.S., China, and Germany, to incentivize its customers through referrals. Chinese customers buying a Model Y or Model 3 with a referral will receive a rebate worth $484.
Musk visited China in late May, engaging with the communist country’s foreign minister and visiting the Shanghai factory. He is part of a wave of American CEOs who have been visiting China for conferences and various events.
Despite the challenges and controversies, Tesla’s second quarter production and delivery figures were impressive, with vehicle production and delivery figures at about 479,700 and 466,100 respectively. This has reflected positively on the company’s share price, with the value of Tesla shares rising nearly 154% since the beginning of the year.
First published by FoxBusiness.
Image from Tesla Owners Club Belgium, Attribution 2.0 Generic (CC BY 2.0)
Jack McPherrin ([email protected]) is a managing editor of StoppingSocialism.com, research editor for The Heartland Institute, and a research fellow for Heartland's Socialism Research Center. He holds an MA in International Affairs from Loyola University-Chicago, and a dual BA in Economics and History from Boston College.