Over a dozen EV automakers, including Tesla and NIO pledge to avoid further price wars in China
A slew of automakers in China have banded together and pledged to regulate how they market their EVs and avoid further price wars to help stabilize a booming market for consumers. Chinese EV automakers like NIO, XPeng, and BYD have been joined by the likes of Tesla to promote healthy competition and less “bad blood” overseas. But is this good for competition or is this cartel behavior?
It has been happening all over the globe, but the EV price wars in China were truly ignited at the start of this year, as Tesla slashed the MSRPs of its Model 3 and Model Y vehicles by about $7,000 each – sparking concerns over demand for the world’s most popular automaker overseas.
Tesla showrooms were flooded with Chinese consumers the next day, not to buy, but to protest. The American automaker had been slowly increasing the price of all of its EV models in China the past two years without any discounts, then suddenly leaned down to kick off 2023. Customers who had just purchased a shiny new Tesla in late 2022 however, were furious.
Historically, Tesla has increased gross margins with cost improvements and has only adjusted its pricing when it needs to create more demand. On paper, Tesla is already the world’s largest automaker by market cap, but its price manipulation offered a real-world study in global economics as its cuts sent shockwaves throughout the global EV market, including China.
Some automakers like BYD and XPeng scrambled to lower their prices to remain competitive, while others stood their ground. For instance, NIO’s CEO William Li said the company would not partake:
Model 3 and Model Y are less complex in functions and configurations compared to Chinese car brands, such as BYD, so it cuts prices to challenge its rivals. Tesla can fix vehicle prices in the US with a market share of over 60 percent, but not in China, where it holds only about 7 percent.
Whether NIO’s chief wants to admit it or not, Tesla’s strategy worked. The automaker just blew through expectations by reporting over 466,000 deliveries in Q2 of 2023, besting its own record a quarter before. Now however, Tesla looks like it’s ready to play nice with its market manipulation and has joined a dozen other EV automakers in a pledge to help stabilize prices for the good of the consumer.
EV automakers band together to end price wars in China
Earlier today at the 2023 China Auto Forum in Shanghai, the China Association of Automobile Manufacturers (CAAM) has helped facilitate a pledge signed by 16 major automakers vowing to uphold fair market order in their industry.
The pledge is signed by CAAM four months after the association called for a market-wide cooling off of price cuts between competitors, especially as automaker began to use marketing strategies to take digs at other companies in the country. The automakers that signed today include China FAW, Dongfeng Motor, SAIC Motor, Changan Automobile, BAIC, GAC, China National Heavy Duty Truck, Chery, JAC, Geely, Great Wall Motor, BYD, NIO, Li Auto, XPeng Motors, and, last but not least, Tesla. Here’s an excerpt from the commitment letter posted by CnEVPost:
First, we will abide by the rules and regulations of the industry, regulate marketing activities, maintain a fair competition order, and not disrupt the fair competition order of the market with abnormal prices.
Second, we will pay attention to marketing methods, will not exaggerate or conduct false marketing, not to mislead consumers to attract attention and increase customer acquisition.
Third, we will put quality first, use quality-oriented, high-quality products and services to meet the people’s needs for a better life.
Fourth, we will actively fulfill our social responsibility, and take an active role in helping to stabilize economic growth, increase confidence and prevent risks, and work together to make a contribution to national economic growth.
It is important to note, however, that this pricing commitment is self-regulatory and by no means legally binding. Still, it shows good faith among a myriad of different EV automakers in China that should help stabilize price wars overseas… at least for the time being.
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With 615 horsepower, the Cadillac Lyriq-V is the quickest Caddie to date. Cadillac’s first V-Series EV will outsprint a CT5-V Blackwing, and it can be yours for under $80,000.
The 2026 Lyriq-V EV is the fastest Cadillac ever
We knew it was coming soon. Cadillac teased the Lyriq-V for the first time in late October, giving a sneak peek at its first electric V-Series vehicle.
Cadillac’s performance brand is known for iconic sports cars like the CT5-V Blackwing, but the new EV pushes the “V-Series sub-brand to new heights,” boasted John Roth, vice president of Global Cadillac.
As the first EV to wear the V-Series badge, Cadillac promised the Lyriq-V would be powerful, but we didn’t know it would be this fast.
Cadillac officially introduced the 2026 Lyriq-V on Thursday, revealing additional specs, prices, and more. With an estimated 615 hp and 650 lb-ft of torque and a standard dual motor AWD powertrain, the EV is expected to accelerate from 0 to 60 mph in just 3.3 seconds, making it the quickest Cadillac to date.
At that speed, it would outrun the Cadillac CT5-V Blackwing with a 0 to 60 mph sprint time in 3.4 seconds. Although the CT-5 packs slightly more horsepower (668 hp), the Lyriq-V’s EV powertrain unlocks more powerful, instant acceleration.
The added power is enabled by an added Velocity Max feature, which “unleashes the vehicle’s full performance capability” with a surge of power and acceleration.
Interior and exterior design, prices, and features
The V-Series model differs from the traditional Lyriq with a lower center of gravity and custom front and rear bumpers. It also features V-Series badging on the rear doors and tailgate, V-pattern mesh on the lower grille, and 22″ wheels with the logo etched into the side.
Inside, the performance EV borrows features from the Lyriq, such as a panoramic fixed glass roof, a 23-speaker AKG sound system, and a massive 33″ LED display screen.
Cadillac distinguishes the V-Series from the traditional Lyriq by adding the V-Series logo, a V-mode button, and a sports rim with hand grips. Other unique features include a custom infotainment experience with a “V-Series persona,” a signature V-Series illuminated sill plate and V-pattern detailing on the seatbacks.
A 102 kWh battery pack is expected to provide a range of up to 285 miles. The 2026 Cadillac Lyriq-V starts at $79,990, including the destination fee.
In comparison, the Tesla Model Y Performance starts at $51,490 and has an EPA-estimated range of up to 277 miles. It also includes AWD and can accelerate from 0 to 60 mph in 3.5 seconds.
Cadillac’s new performance EV will be sold in the US, Canada, Australia, and New Zealand. Other markets will be announced closer to launch. GM will begin producing the new Lyriq-V at its Spring Hill, TN, manufacturing plant in early 2025.
What do you think of the Cadillac’s new performance EV? Would you buy one for $80,000? Or are you sticking with the Model Y Performance? Drop us a comment below to let us know.
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Tesla has announced some important price hikes across its entire lineup in Canada amid incentives going away and a struggling Canadian dollar.
The Canadian EV market is already having problems amid announcements that the federal incentive program will be eliminated. The same thing is happening to Quebec’s own program, which was the most generous in the country—making the province the leader in EV adoption in Canada.
Now, Tesla, which sells more EVs than anyone in Canada, announced that it is increasing prices on all its lineup.
Here are the price increases for each Tesla model:
- Model 3:
- Long Range RWD: $4,000
- Long Range AWD: $8,000
- Performance: $9,000
- Model Y: $4,000
- Model S: $4,000
- Model X: $4,000
Buyers can still get $1,300 CAD off of new Model Y, Model S, or Model X purchases with a referral code.
Tesla never comments on price changes and therefore, we don’t know the official reasons for these specific price increases, but we can make some educated guesses.
First off, the Canadian dollar has crashed in comparison to USD over the last few months:
Furthermore, the timing of announcing that the price increases will take place on February 1st has led some to link this to the upcoming tariff wars that President Trump signaled against Canada.
The US President said that he plans to impose 25% tariffs on any goods coming from Canada, and Canada said that it would retaliate.
Electrek’s Take
Obviously, this is not good for the EV market in Canada.
The removal of incentives is already hurting the market, and now the base price of the most popular EVs in the country, Tesla vehicles, is also going up before incentives.
This will be a bad year for EVs in Canada.
Hopefully, things will settle down and we will get more clarity once the tariff war actually starts.
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