Tesla introduced a global customer referral incentive on July 7, 2023. It is called “Refer and Earn.” The incentive is available worldwide. It allows buyers to receive extra rewards by referring new customers.
In the United States, purchasers of the Model 3 or Model Y who use a referral code will get $500 in cashback and three months of the Full Self-Driving feature. Tesla’s referral incentive mirrors a common strategy employed by automakers to boost sales.
By rewarding existing customers for referrals, automakers can create a network of advocates to attract potential buyers and enhance brand loyalty. The electric vehicle (EV) market is becoming increasingly competitive. This prompted Tesla’s decision to implement a referral incentive.
Other automakers have also begun offering incentives and launching new EV models. Tesla aims to remain competitive in the market by introducing its referral incentive. The effectiveness of the new referral incentive for Tesla is yet to be determined.
However, the company has a proven track record of successfully driving sales through its referral program. In 2022, Tesla’s referral program generated more than $1 billion in revenue. If the new incentive proves successful, it could help Tesla maintain its leading position in the EV market.
