Tesla, the leading electric-vehicle manufacturer, has introduced a global program that allows customers to earn extra incentives through referrals from existing buyers. This strategy, commonly employed by traditional carmakers to enhance sales, has been dubbed “Refer and Earn” by Tesla. In the US, buyers of the Model 3 and Model Y can receive cash back of about $500, along with three months of the Full Self-Driving feature. The program has been implemented in Tesla’s major markets, including the US, China, Germany, France, Canada, Mexico, Hong Kong, and Singapore.
Previously, Tesla focused on real-time price adjustments on its websites and had discontinued the referral program due to its high costs. However, it recently revived the program as a means to boost sales, especially considering the intensifying competition in the global EV market. CEO Elon Musk has stated that Tesla would prioritize sales growth over profit in response to increased competition and a weak economy.
Analysts have noted that Tesla’s continuous price cuts and referral initiatives indicate that the company is still striving for equilibrium in the market. Tesla’s dominance in the EV sector has allowed it to apply pressure on both legacy carmakers and cash-strapped EV startups. Tesla’s stock has performed exceptionally well this year, outperforming the broader market. However, concerns over margins and production ramp-up issues persist among traditional automakers.
Tesla has also announced cash rebates for new buyers in China who provide referrals from existing owners. Similarly, customers in the UK can receive discounts on select models by using a referral code. Tesla has been reducing prices in China since last year, although it has slowed down the frequency of price cuts on new orders. Nonetheless, the company has increased the discounts on its existing inventory, leading to record-breaking vehicle deliveries in the second quarter.
Overall, Tesla continues to be regarded as a compelling growth story, with its expanding production capacity and upcoming vehicle launches. The company’s focus on affordability, demonstrated through price cuts and incentives, has contributed to its success in the EV market.
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