Tesla on Friday offered a new incentive to boost sales of electric cars in China as it notified some workers who produce batteries at its Shanghai complex of layoffs, according to the company and the employee who received the notice.

Tesla announced it was offering cash rebates on new cars a day after joining 15 other companies, including Chinese electric car makers Nio, Li Auto and Xpeng, in a promise to avoid “abnormal pricing,” which some said signaled a truce in a price war that threatens industry-wide profitability.

Taken together, these developments point to the pressure Tesla and its competitors are feeling on China’s electric car market, the largest in the world.

The price pledge signed by executives was orchestrated by the China Automobile Manufacturers Association.

The layoffs will not affect production volumes at Tesla’s Shanghai Gigafactory, the company’s largest and most productive center, according to people familiar with the factory complex, which employs about 20,000 workers.

Although Tesla’s round of price cuts boosted sales earlier this year, competition has put pressure on automakers and suppliers to contain costs.

Tesla said Friday that it would offer new buyers of its Model Y and Model 3 cars a cash rebate of 3,500 yuan ($483) if they could cite a recommendation from an existing owner.

Layoffs have been announced at Tesla’s battery assembly plant in Shanghai, according to an employee who received the notice.

The layoffs were first reported by Chinese online news portal Deep Analysis on Thursday, which said fewer than 1,000 people were employed at the plant’s two battery production lines.

It was unclear how many workers might be laid off or reassigned, or the specific reason for the layoffs.