Tesla Adds Model 3 And Y Discounts To Its Referral Program
Tesla has expanded its referral program and added two new cars, the Model 3 and Y, after relaunching it last year. According to Reuters, the incentives are also available to customers in China, Canada, France, Germany, Hong Kong, Mexico, Singapore, and the U.K., among other markets.
For existing customers, if their referral link is used to purchase a Model 3 or Model Y, the buyer will get $500 off the car's sticker price. In addition to the cash benefit, Tesla will also offer three months' worth of Full Self-Driving access. For Tesla customers generating the referral link, they will be rewarded with 10,000 referral credits.
These credits can be redeemed to win awards within the Loot Box available in the Tesla app. For example, they can be used to pay for Supercharging miles. However, an existing customer can only generate five referrals per year to earn credits, and they must also redeem them within 12 months. All the surplus referrals generated by Tesla car owners will only extend the benefits to new buyers.
2023 is going to be a litmus test for Tesla, as it faces the pressure of maintaining momentum while it preps the launch of its oft-delayed Cybertruck. While the company has tasted considerable success with the adoption of its charger tech by automotive rivals, what really matters is how much cash it generates for the coming quarters, and that only comes from adding new customers — with or without referrals.
More competition ahead
Tesla has also revised the terms for referral benefits covering its other two cars, and its Solar roof, as well. Model S or Model X referral purchases are rewarded with a discount worth $1,000 on the car's asking price, alongside a complementary Full Self-Driving subscription for three months. In return, the referral link generator gets 20,000 credits.
Notably, Tesla is also offering $500 off the price of its solar roof tiles using a referral link — the same value as someone buying a Model 3 or Model Y. For the existing Tesla customer, they will get 9,000 credits in their Tesla account. The referral perks for Model S, Model X, and the solar roof have been live since June, while those targeting the Model 3 and Model Y go into effect today.
Tesla delivered a record 466,000 electric cars in the past quarter, beating Wall Street estimates. This came on top of multiple price cuts that reduced the sticker price of its cars by up to 6%. While the price cuts have paid a handsome dividend in the past few years, Tesla is reportedly eyeing an ambitious 1.8 million EV deliveries this year.
Further reducing the price of its EVs is a sure-shot way of attracting new buyers and retaining the existing base of customers. It also makes sense in an increasingly heated EV market, where the likes of Mercedes, Hyundai, Volkswagen, Polestar, and Ford have begun offering EVs that undercut Tesla's own on key parameters.