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Tesla rolls out global customer referral program as EV price war heats up

The incentive, which Tesla has dubbed 'Refer and Earn' on its websites, is the equivalent to about $500 in cashback to new buyers in the US

Reuters Published 07.07.23, 06:27 PM
Representational image

Representational image File image

Electric-vehicle maker Tesla rolled out a new program globally allowing buyers to earn extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

The incentive, which Tesla has dubbed "Refer and Earn" on its websites, is equivalent to about $500 in cashback for buyers in the U.S., who purchase Model 3 and Model Y. The U.S. incentives also include three months of its Full Self-Driving feature.


The program was rolled out in Tesla's largest markets, including the United States, China, Germany, France, Canada, Mexico, Hong Kong and Singapore, according to the company's regional websites on Friday.

Legacy automakers have historically used employee and loyalty discounts to lower the sticker price of cars. Tesla up to now has focused on real-time adjustments to prices posted on its websites.

The company also said on Friday it would offer new buyers of its Model Y and Model 3 vehicles in China a cash rebate of 3,500 yuan ($483.69) if they could cite a referral from an existing owner.

A number of Tesla owners in China posted their referral codes online and invited others to use them.

In the UK, buyers using a referral will receive a discount of 1,000 pounds on Model S and Model X starting July 7, the company's website showed. The discount was for 500 pounds for Model 3 and Model Y.

Tesla, which aggressively cut prices since late last year starting in China, has slowed price cuts on its new orders but increased discounts on its already made cars.

On Sunday, the automaker delivered a record number of vehicles in the second quarter, topping market estimates. Tesla also achieved record deliveries of its China-made vehicles in the second-quarter.

Tesla CEO Elon Musk in April doubled down on the price war, saying the company would prioritize sales growth ahead of profit in a weak economy and rising competition.

Tesla shares have more than doubled so far this year, outperforming the 15% rise in the S&P 500 index.

($1 = 7.2360 Chinese yuan renminbi)

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