Tesla rolls out global customer referral incentive as EV price war heats up
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 cash back 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 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 said 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.
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.
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