Tesla CEO Elon Musk joined with Chinese electric vehicle counterparts to sign a “core socialist values” pact, according to a report.
Sixteen manufacturers, including Tesla and Chinese rival BYD, signed the pledge on Thursday in Shanghai, according to The Financial Times. The pledge includes a promise to support China’s “core socialist values,” abide by several regulations to maintain “fair competition” and “take on the heavy responsibility of maintaining steady growth, strengthening confidence and preventing risks,” according to a Bloomberg translation.
Tesla is the only foreign carmaker to sign the Chinese pledge, though they have not commented on it. The letter signals a truce between the electric vehicle makers in the market after Tesla slashed prices on two of its models in October due to rising competition, according to The Financial Times. (RELATED: ‘In China’s Pocket’: Presidential Candidate Vivek Ramaswamy Slams Elon Musk For Cozying Up To CCP)
SHANGHAI, CHINA – MARCH 29: An aerial view of Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China. Tesla Shanghai Gigafactory is reportedly producing vehicles at a rate of about 450,000 cars per year. (Photo by Xiaolu Chu/Getty Images)
Senior Inspector at the Ministry of Industry and Information Technology Miao Changxing said the industry needed to avoid “reckless” price-slashing, according to the report. The letter touches on Tesla’s continued navigation in the highly competitive electric vehicle market.
The move has been met with criticism, however, with China researcher at Human Rights Watch, Yaqui Wang, saying that “failing to comply with ‘core socialist values’ has been frequently used by authorities to punish speeches that are critical of the Chinese government,” according to the report.