Tesla's Model S referral program is slated to end on October 31st - do you think they'll extend the program?
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Will Tesla Extend the Model S Referral Program?
- Thread starter Cattledog
- Start date
I'm still thinking some of the features unveiled on the X (and maybe even some yet to be revealed features) will make it to the S sooner than later. If many others thought this as well, then S sales would drop due to the Osborne Effect.
In my opinion, that's why the referral program was created to stimulate sales of the S in the 4th quarter while many were on the fence about ordering the X. The X has been delayed time and time again and Tesla would rather have guaranteed sales of the S now instead of potential sales of the X next year (due to the backlog of orders). Current orders are now expected to be delivered in December so the production pipeline is pretty full for the rest of the year. I'm hoping that means the S refreshes will be announced shortly after the referral program expires and that will cause another bump in sales for 1st quarter 2016. Current buyers might be disappointed they won't be getting new features but they will have saved $1000-$2000 by taking advantage of the referral program.
MH - I agree with your thinking, I simply think that they'll extend it now for a defined period for one of two reasons:
1. Model X production is not quite dovetailing with Model S when they want it too (in the next 3 months), so they want to prime Model S demand a bit more.
2. Refreshes to Model S (with Model X features or their own new ones) are not ready yet so they'll keep this in place until they are ready - guessing sometime next year, Q1/Q2 right before Model 3 unveil.
1. Model X production is not quite dovetailing with Model S when they want it too (in the next 3 months), so they want to prime Model S demand a bit more.
2. Refreshes to Model S (with Model X features or their own new ones) are not ready yet so they'll keep this in place until they are ready - guessing sometime next year, Q1/Q2 right before Model 3 unveil.
Joules Verne
Member
I agree with the thinking as well. The program was designed to spike demand at a time of Model S refresh uncertainty.
Incentive program or not, I'm still holding-out for the trickle down of the model X R&D (not all of which has been revealed to us).
Incentive program or not, I'm still holding-out for the trickle down of the model X R&D (not all of which has been revealed to us).
SW2Fiddler
We Are Cognitive Dissidents
I expected them to extend it originally. That was before the inherent inequities caused by OH/VA law, putting the rest of the world at a disadvantage, began to be openly exploited.
(Or I should say, the laws put OH/VA residents at a disadvantage, and the subsequent modification by TM reversed that effect rather than nullifying it)
(Or I should say, the laws put OH/VA residents at a disadvantage, and the subsequent modification by TM reversed that effect rather than nullifying it)
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I voted "No - But may return in the future"
Any reservation after Oct 31 will not be delivered by Dec 31 for outside the US. No point in losing $2K for Tesla if the sale doesn't count for 2015 numbers. They wouldn't be able to cancel it for some countries and keep it going for the US. Even US reservations after Oct 31 would be delivery for the last 2 weeks of December. By then if sales aren't where they should be to meet guidance, Tesla can always move a few inventory cars. Increasing discounts for about 1000 inventory cars to move them fast is better than selling 14,000 cars at $2k discounts each (for Tesla).
Any reservation after Oct 31 will not be delivered by Dec 31 for outside the US. No point in losing $2K for Tesla if the sale doesn't count for 2015 numbers. They wouldn't be able to cancel it for some countries and keep it going for the US. Even US reservations after Oct 31 would be delivery for the last 2 weeks of December. By then if sales aren't where they should be to meet guidance, Tesla can always move a few inventory cars. Increasing discounts for about 1000 inventory cars to move them fast is better than selling 14,000 cars at $2k discounts each (for Tesla).
I think if they choose to make October 31st the last day of the referral discount, especially if they announce the discount is ending through a tweet or blog post, they will see a surge in orders this last week. This would be equivalent to the end of 2012 (or was it 2013?) when they announced a price increase about mid-December effective January 1 and orders skyrocketed.
robby
Member
I think he's referring to VA/OH referral codes getting them $2k rather than splitting it with someone in another state. I had a similar situation -- I completely sold a friend on the car (he was not considering it, I begged him to ride with me before making his decision; last week he finalized his order). But how could I ask him to use my code, when he can go on the internet and find someone else's that saves him another $1,000?
Not a huge deal for me, as I'm selling something I believe in, not trying to earn Tesla sales credit, but I do think they botched the incentive portion of this program pretty hugely with the VA/OH workaround.
I certainly understand that - but you might have friends who'd rather have you each get $1,000. It doesn't always have to be about the absolute amount. When we bought our house, the existing owner drove by when we were taking photos in front with our kids (we didn't know he was the owner at the time) and asked what we thought. We thought he was a neighbor so we said, "We love it!". Probably not a great negotiation tactic. However, he received two bids for the house with ours being $5,000 lower, but he took it because he wanted to sell to someone who loved the house.
So there's a little hope for those of us who live in $1,000 states.
If you wanted to you could give him your 1k. It's no different. And then you would have received the credit towards the other awards.
With new rumors that some/many/all Model Xs won't be delivered until January 2016, perhaps the 'Yes - For a Defined Period' vote will start to perk up.
The rules for the current program ended up kind of a mess as they amended them to add more incentives and various jurisdictions had problems with it. I think the program will be back, but only after they go through a lessons learned phase and rewrite the rules so they work in most if not all jurisdictions, tighten up the rules to prevent the ad word spamming that happened, and settle on one set of incentives for current owners from the start of the next program.
For most car companies, mid-winter is usually a slow time of the year, though I don't know with Tesla's sales program, it's a different animal. I wouldn't be surprised to see some sort of incentive program back in 2-3 months, but with different rules.
For most car companies, mid-winter is usually a slow time of the year, though I don't know with Tesla's sales program, it's a different animal. I wouldn't be surprised to see some sort of incentive program back in 2-3 months, but with different rules.
That's not true at all, and it's kind of funny coming from a resident of Virginia. At least you stopped at 13 people that were likely going to buy the car anyways, unless you have a ton of rich friends (which hey, you might).
It's different in two important ways. The $1,000 credit I "give him" can only be used on things from the service center. This is very different than an extra 1k off the top. Also, I have to pay taxes on the $1,000 credit I am "giving away".
Of course Tesla didn't have to do this at all, but I still reserve the right to be irritated by it.
Look at it this way, you get to live in Seattle and people in the $2K states have to live there. You got the better deal.
Isn't the Tesla referral program a smarter way to circumvent anti Tesla legislation ?
Of course there will be push back, but meanwhile thousands of extra Tesla's might be sold. The main goal is getting at least a few Tesla's on every upper middle class neighbourhoods in states where Tesla can't actively sell, but can deliver cars ordered online.
If this logic follows, wouldn't it be better for Tesla to keep the referral program with the standard void where forbidden restriction ?
Of course there will be push back, but meanwhile thousands of extra Tesla's might be sold. The main goal is getting at least a few Tesla's on every upper middle class neighbourhoods in states where Tesla can't actively sell, but can deliver cars ordered online.
If this logic follows, wouldn't it be better for Tesla to keep the referral program with the standard void where forbidden restriction ?
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