At a phone-in news conference Wednesday, Elon Musk announced Tesla is beginning a new experimental referral program which knocks ,000 off the price of a Model S for buyers who are given a referral link from current Model S owners.
Known for being active user of Twitter, Tesla Chief Executive Elon Musk once again used the social media website to create hype of its upcoming vehicle upgrade.
Such a referral program is unusual but not unprecedented among traditional automakers and their franchised dealers. The Tesla Model S is the only current model and it starts at $70,000.
Musk added that the move will be a part of an experiment in efforts to boost word of mouth without opening many new stores in the future.
Tesla forecasts deliveries rising 64 percent this year to 55,000 vehicles including the Model X, a sport utility vehicle, set to go on sale this quarter. What worked for PayPal may not work for Tesla, but it is worth trying, as the net result would be lowering our costs by $2,000, allowing us to give that money to our customers.
Tesla said the owners whose links are used the most will win prizes, including a tour of the company’s new battery “gigafactory” in Nevada and the opportunity to buy a limited-edition “Founder Series” of the Model X at a $25,000 discount. When I meet Tesla owners, one of the first things they often tell me is how they have convinced many others to buy the auto.
“This is a low-cost way to try to continue to grow sales”, said Ben Kallo, an analyst with Robert W. Baird & Co., who has the equivalent of a buy rating on Tesla. The remaining balance to 55,000 is expected to be covered by the Model X, which is dependent on the production speed of the SUV. “Customers, who are not salespeople, can refer their friends – there’s no rule against that”.
To date, Tesla has circumvented states with anti-competitive auto dealer law by operating Tesla Galleries, where customers can find out about electric cars in general but can’t order a Tesla Model S, arrange a test drive, or even ask about pricing.
So, while the incentives appear attractive, you probably have a better chance of winning the lottery than persuading 10 of your nearest and dearest to purchase one of the most exclusive cars on the market just so you can get a free Model X.
