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Tesla Introduces Global Referral Program to Boost Electric Vehicle Sales
Tesla rolls out a new "Refer and Earn" program worldwide, offering buyers cash-back incentives and additional perks through referrals from existing customers.
Electric-vehicle manufacturer Tesla launches a global program, allowing customers to receive extra incentives through referrals from existing buyers. The strategy, commonly used by traditional automakers, aims to drive sales growth.
Named "Refer and Earn," Tesla's incentive offers $500 cash-back and three months of Full Self-Driving feature for US customers purchasing the Model 3 or Model Y. The program extends to major markets such as China, Germany, France, Canada, Mexico, Hong Kong and Singapore, as stated on Tesla's regional websites.
Tesla has not responded to Reuters' request for comment regarding the rebates. Traditional automakers have traditionally employed employee and loyalty discounts to reduce vehicle prices.
Previously discontinued due to high costs, Tesla revived the referral program as part of its strategy to bolster sales amid increasing competition in the global EV market. The company has been adjusting prices in real-time on its websites.
Analysts suggest Tesla's emphasis on sales growth over profit demonstrates its dedication to increasing market share. The impact of price cuts and margins remains a concern.
Although Tesla's inventory growth has slowed, margins continue to be a key consideration, according to Needham analyst Chris Pierce. The company's second-quarter results are expected to be announced on July 19.
Tesla's industry-leading profit margins have positioned it as a formidable competitor in the EV price war, affecting both traditional automakers and EV startups facing financial constraints.
Paragraph 8: Tesla shares have more than doubled this year, outperforming the S&P 500 index. On Friday, the stock experienced a marginal increase.
Challenges related to ramping up EV production are likely to affect traditional automakers pursuing aggressive growth plans. Ford reported a 2.8% decline in second-quarter EV sales on Thursday.
In China, Tesla offers a 3,500 yuan ($483.69) cash rebate to new buyers of the Model Y and Model 3 who can provide a referral from an existing owner. Several Tesla owners in China have shared their referral codes online.
In the UK, customers using a referral will receive a discount of £1,000 ($1,278.00) for Model S and Model X starting from July 7, while a discount of £500 is applicable to Model 3 and Model Y.
Tesla, which has been implementing price reductions since late last year, particularly in China, has reduced new order price cuts but increased discounts on already manufactured vehicles.
Tesla achieved record vehicle deliveries in the second quarter, surpassing market expectations. Price reductions and US federal credits have contributed to making Tesla's electric vehicles more affordable. Additionally, the company reported record deliveries of its China-made vehicles during the same period.
Tesla introduces a global "Refer and Earn" program to boost electric vehicle sales.
Customers receive $500 cash-back and three months of Full Self-Driving for US purchases.
Program expands to major markets, including China, Germany, France, Canada, Mexico, Hong Kong and Singapore.
Source: Reuters