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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Rivian (RIVN) plans to launch a new Advanced Driver Assistance System (ADAS) this year to enable hands-free driving. The new feature is expected to be similar to Tesla’s Full-Self Driving (FSD). In 2026, Rivian will up the ante with an “eyes-free” system.
Rivian plans hands-free driving in 2025, eyes-free in 2026
At the new Rivian Space opening in San Francisco on Thursday, CEO RJ Scaringe revealed a few exciting developments to look forward to.
According to the folks at RivianForums, Scaringe said during the event that the company plans to launch a hands-free ADAS feature in 2025. Next year, Rivian will follow it up with an “eyes-free” system.
The big question is, will current Rivian R1S and R1T owners gain access? It could depend on whether you drive a Gen 1 or Gen 2 model. All Rivian models built through 2024 are considered Gen 1, while models 2025 and newer are Gen 2.
Rivian introduced the second-generation R1S and R1T last summer. They were “completely reengineered” with hundreds of hardware improvements, fully redesigned software, and more.
The upgrades include its new in-house autonomy system, Rivian Autonomy Platform. It’s powered by 11 cameras, five radars, and predictive AI.
Rivian said the new platform is “10 times more powerful” than the old system. It also features 360-degree visibility with 8X the number of camera pixels than the previous models. Gen 2 models already include features like Blind Spot Monitoring and Highway Assist.
With the premium version, drivers gain access to Lane Change, while Rivian said Enhanced Highway Assist and other features were coming soon.
Although all Rivian R1S and R1T EVs include OTA updates, some features may require additional hardware or software not included on Gen 1 models.
Rivian hands-free and attention-free autonomous highway driving will be available on the upcoming R2 model. The smaller electric SUV is due out in the first half of 2026, starting at around $45,000.
Electrek’s Take
As a Tesla Model 3 driver, I can tell you that Full-Self Driving (FSD) is fun and can be helpful at times. I’ve used it on longer trips, like through the Blue Ridge Mountains, and it makes driving or sitting in the car a little more enjoyable.
Although the system still requires you to pay attention, it enables the vehicle to drive itself almost anywhere with “minimal driver intervention.”
The new Actually Smart Summon feature is one of my favorites. Through the Tesla app, you can summon your vehicle to come to you in a parking lot. The vehicle will then move around other cars, people, and objects to find you.
Other functions, like Navigate on Autopilot, will take over while the vehicle is on the highway, changing lanes (with turn signals) and braking or accelerating as needed.
For Rivian owners, it would be like an upgraded system from Highway and Lane Change Assist. The “eyes-free” system coming next year will likely have a few regulatory hurdles to pass before it rolls out, so it should be interesting to see what that will consist of. Check back for more info soon. We’ll keep you updated with the latest.
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The United Arab Emirates is building the world’s largest solar and battery storage project that will dispatch clean energy 24/7.
Emirati Renewable energy company Masdar (Abu Dhabi Future Energy Company) and Emirates Water and Electricity Company (EWEC) are developing the trailblazing solar and battery storage project. Once it’s online, will become the largest combined solar and battery energy storage system (BESS) in the world.
Located in Abu Dhabi, the project will feature a 5.2 GW solar PV plant coupled with a 19 gigawatt-hour (GWh) BESS.
His Excellency Dr. Sultan Al Jaber, minister of industry and advanced technology and chairman of Masdar, said:
For decades, the biggest barrier facing renewable energy has been intermittency – to be able to source uninterrupted clean power day and night.
In collaboration with EWEC and our partners, we will develop a renewable energy facility capable of providing clean energy round the clock.
For the first time ever, this will transform renewable energy into a world-leading 1 GW of reliable baseload energy every day on an unprecedented scale – a first step that could become a giant leap for the world.
Masdar announced China’s JA Solar and Jinko Solar, two of the world’s largest solar panel suppliers, and Chinese battery and BESS giant CATL as preferred suppliers. JA Solar and Jinko Solar will supply 2.6 GW of solar panels each. India’s Larsen & Toubro and POWERCHINA have been selected as preferred engineering, procurement, and construction contractors.
Masdar says the project will create 10,000 jobs and doesn’t yet indicate a projected completion date.
Read more: China installed a record capacity of solar and wind in 2024 – in numbers
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U.S. President Donald Trump holds a signed executive order on cryptocurrencies in the Oval Office of the White House in Washington on Jan. 23, 2025.
Kevin Lamarque | Reuters
President Donald Trump signed an executive order on Thursday to promote the advancement of cryptocurrencies in the U.S. and to work toward potentially developing a national digital asset stockpile.
Venture capitalist David Sacks, who Trump tapped as his crypto and artificial intelligence czar, joined Trump in the Oval Office for the signing of the order.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the order states.
Trump, who was a crypto critic in his first administration, changed his tune on the campaign trail and attracted hefty contributions from the industry after a tumultuous four years under then-President Joe Biden. Crypto investors, companies and executives accounted for almost half of corporate donations in the 2024 election cycle, with some contributing tens of millions of dollars to help Trump win a second term in office.
Most of the order focuses on establishing technology and rules around crypto and its development in the U.S. One of the critical pieces is the creation of a working group to consider a national digital asset stockpile, “potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement effort.”
Historically, the U.S. Marshals Service has auctioned off seized bitcoin, along with other cryptocurrencies such as ether and litecoin. Trump promised on the campaign trail that if he returned to the White House, he would ensure the federal government never sells off its bitcoin holdings, though Thursday’s order does not mention bitcoin.
“If I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future,” he said in July in a keynote at the Bitcoin Conference in Nashville, Tennessee.
The order goes on to outline other key priorities for the digital asset industry, including protecting individuals and private sector companies that use blockchain networks from “persecution.” The document spells out certain protections for developers and miners, noting that they should be able to freely “develop and deploy software” as well as “participate in mining and validating,” a nod to the technicians securing the bitcoin network.
The president has also pledged to defend the rights of those who choose to self-custody their digital assets. That means they do not rely on a centralized entity such as Coinbase to hold their tokens and instead use personal crypto wallets, which are sometimes outside the reach of the Internal Revenue Service.
The order emphasizes promoting the sovereignty of the U.S. dollar by supporting the growth of legitimate, dollar-backed stablecoins globally.
Since his victory in November, Trump has focused on appointing government leaders who support the cryptocurrency sector.
Paul Atkins has been nominated to chair the Securities and Exchange Commission. Atkins, a former SEC commissioner, is known for advocating market-friendly policies and opposing heavy-handed regulation. If confirmed, he will succeed Gary Gensler, whose aggressive enforcement of crypto regulations made him a divisive figure in the industry.
Earlier this week, the SEC announced the formation of a new “crypto task force,” to be led by Commissioner Hester Peirce. Dubbed “Crypto Mom” for her outspoken support of digital currencies, Peirce has long championed a regulatory framework that fosters innovation rather than hindering it.
Scott Bessent, a pro-crypto hedge fund manager, is Trump’s pick to lead the Treasury Department. Bessent attended the Crypto Ball on Friday in Washington, an event that brought together lawmakers, cabinet appointees and industry leaders and underscored the administration’s plan to make the U.S. a global leader in digital asset innovation.
Sacks told the crowd at the packed Mellon Auditorium on Friday night that “the war on crypto is over.”
“This is just the beginning of America reclaiming its position as the world’s innovation leader,” Sacks said.
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