Tesla Referral Program To End As Base Model 3 Comes Online

There’s been much animosity toward the Tesla Referral Program, and now it will go away.

Tesla CEO Elon Musk has announced via Twitter, that the infamous (or famed depending on your interests and situation) Tesla Referral Program will come to an abrupt end. This is not to say that there won’t be some re-initiation and/or adaption of the program down the road, but for now, it will completely disappear.

We just recently shared a video from our friend Sean Mitchell. It talked about how Tesla owner support is the company’s number one asset. However, we’ve regularly questioned whether Tesla is, in fact, losing money by giving away stuff like free Tesla Roadsters to a myriad of YouTubers who may only publish videos and push their codes in order to benefit from the situation.

C’mon, some of these YouTubers already have two Roadsters coming their way, and they’ve canceled their initial reservations. It only makes sense that Tesla didn’t expect popular, hardcore YouTubers to work to secure two or more Roadster incentives via videos and followers. That’s definitely taking advantage of the situation, but we won’t name names, though we can still say, UGH!

Regardless of any unknown details, Musk says the program will go away at the end of the month. Keep in mind, however, that this could be much like any one of the many social media announcements from the outspoken CEO. Everything changes on a regular basis, and while some have come to accept that, others have not. Now that Tesla showed a profit in Q3, and we expect that it will show an even greater gain in Q4, perhaps it doesn’t need to referral program for continued success?



The Tesla customer referral program will end on Feb 1. If you want to refer a friend to buy a Tesla & give them 6 months of free Supercharging, please do so before then.

— Elon Musk (@elonmusk) January 17, 2019





Tesla has been pumping its referral program perks for some three years. But, if the company is at a point that demand exceeds supply, then the program might not be necessary. As we’ve already seen, there have been times that Tesla, in its current situation, can’t even make enough vehicles to fill all orders. So, if that’s the case, dishing out incentives for referrals just makes the backlog even greater.

Let’s continue to keep in mind that as of the time of this writing, Tesla hasn’t officially announced this. Musk has been known to tweet official details that are then later changed. However, generally, his tweets are most often a precursor to an official announcement from the company.

Below we’ve included some followup tweets that were replies to the original message:



Yes, ending on Feb 1. It’s adding too much cost to the cars, especially Model 3.

— Elon Musk (@elonmusk) January 17, 2019







No, the whole referral incentive system will end

— Elon Musk (@elonmusk) January 17, 2019







Order must occur before Feb 1

— Elon Musk (@elonmusk) January 17, 2019





Do you think this is a good idea, or a terrible move on Tesla’s part? Let us know in the comment section below.

This article originally appeared on Inside EVs.

 

[tbee]

I can understand that they will reduce the costs of the program, but being able to earn perks is what motivates people. So bad idea.

 

[HankLloydRight]

The article states:

Let’s continue to keep in mind that as of the time of this writing, Tesla hasn’t officially announced this.

But they changed the website early this morning to reflect the change:

Referral Program

 

[Frunkenstein]

People abusing the system ruins the fun for everyone. The fact Tesla allowed anyone get two or more Roadsters was insane. I could see one, and at an extremely high referral count (think those prizes at where it took a bazillion tickets to get), but the levels they set were too low in my opinion. I worked for the one referral I have through talking it up (no social media or YouTube) and was looking to work for a couple more to get the wheels. I wonder what Tesla will do about those who clearly offered up incentives to get those Roadsters as it's against the latest rules of the program? (found out the hard way about this in these forums!).

Wish they would keep the current program until the original expiration date and then offer up a more reasonable program later down the road. Oh well. I'll keep talking up my Model 3 regardless as it is an amazing vehicle!

 

[BluestarE3]

The title mentions base Model 3 coming online, but there's nothing about this in the article. I thought maybe they've finally announced a firm date on the SR.

 

[ahmadr]

The title mentions base Model 3 coming online, but there's nothing about this in the article. I thought maybe they've finally announced a firm date on the SR.

Yep. Pure clickbait

 

[jboy210]

Hopefully it will come back. Just with more smaller prizes that top out earlier. Maybe they can add something like HPWCs, get free Supercharging for life on your Tesla for x referrals, race the truck, etc. No need for the over the top prizes and these will a wider group of general owners participating.

 

[HankLloydRight]

I agree...keep the referral awards small and inexpensive... like invites to unveilings and launches, since there will always be those (Tesla, SpaceX, Boring Co) and maybe some Tesla merch like the wall chargers or duffle or carry-on bags -- those were great prizes! Dump the Arachnid wheels though! They have caused more people more headaches and confusion and waiting than any other merchandise prize.

Also the PW2 prize was a really nice prize, but they got in WAY over their heads with that one, since they also had to throw in $2k of installation labor, plus all the engineering and surveying costs, etc. I'm sure every single PW2 award costs them the cost of the PW2, plus all that labor, which isn't cheap labor. And no more huge "top prizes" either, that just makes people crazy.

I would recommend (like I have before) go to a "point system" where you can collect referral points and cash them in for small prizes. 1 referral=duffel bag; 2 referrals= carryon bag; 3 referrals=wall charger. If you want a wall charger, save up and spend 3 referral points, or get 3 duffel bags for one point each instead. None of this "you get every prize at every level".

This way they can keep the awards small, cheap, shippable, and manageable. Any fulfillment house could easily handle it.

 

[MorrisonHiker]

I agree...keep the referral awards small and inexpensive... like invites to unveilings and launches, since there will always be those (Tesla, SpaceX, Boring Co) and maybe some Tesla merch like the wall chargers or duffle or carry-on bags -- those were great prizes! Dump the Arachnid wheels though! They have caused more people more headaches and confusion and waiting than any other merchandise prize.

Also the PW2 prize was a really nice prize, but they got in WAY over their heads with that one, since they also had to throw in $2k of installation labor, plus all the engineering and surveying costs, etc. I'm sure every single PW2 award costs them the cost of the PW2, plus all that labor, which isn't cheap labor. And no more huge "top prizes" either, that just makes people crazy.

I would recommend (like I have before) go to a "point system" where you can collect referral points and cash them in for small prizes. 1 referral=duffel bag; 2 referrals= carryon bag; 3 referrals=wall charger. If you want a wall charger, save up and spend 3 referral points, or get 3 duffel bags for one point each instead. None of this "you get every prize at every level".

This way they can keep the awards small, cheap, shippable, and manageable. Any fulfillment house could easily handle it.

Great idea! When they were asking for feedback in 2016, I made this same suggestion. People who had already earned smaller prized didn't need/want to earn them again every referral program. If they could've banked their points, they could cash them in on something they actually wanted. Kind of like saving up those proofs of purchase on Star Wars figures, etc. in order to get an exclusive figure only available via mail.

 

[cpa]

Perhaps Tesla should consider awarding S&H Green Stamps for referrals instead. Then we could redeem them for what we truly need or want: bath towels, blenders, waffle irons, Chinet dishware, the list is endless.

Or, take a page from the service stations during the '50s and '60s. A set of eight tumblers like these for each referral:

vintage aluminum tumblers | eBay

 

[Brando]

Supply is still the problem and not demand.
And most EVERYONE keeps screaming for profits.

One Tesla Roadster WINNER [Canadian] complained because of Tesla price change which he missed on his Model 3. While dreaming/working of getting a 3rd Roadster for their EV publication.

Suspect a good idea to concentrate on deliveries/manufacturing rates and re-do "referral program" in the future.

AND the used/CPO program needs serious attention - employee/training/policies - as it could be a reasonable profit center, I think.

Lots to do: China GF; batteries as always; storage products, solar roof, SEMI, Roadster, Model Y, pickup, international deliveries, and what? 1/3 of the US states Tesla can't sell in?

 

[jboy210]

1/3 of the US states Tesla can't sell in?

That is going to take a lot more work than any other the others. It requires crushing the dealership lobby and their deep pockets.

Lower hanging fruit is selling cars in Europe and China.

 

[scole04]

Tesla is thinking with Supercharger V3 and 2170 updates these cars will just sell themselves. I have huge expectations.

 

[Jbailey]

I have a theory on the referral program. This is the only way I can make sense of it. There were over 400000 reservations on the model 3 and people decide to buy them based primarily on friends/ co-workers raving about the car, letting others ride in them etc. Huge demand, so people decided to buy one. With minimal research, and even at Tesla showrooms buyers were told to obtain a referral code for free supercharging or whatever....so with 30 seconds on a search engine, they found a podcast or Youtube or other social media outlet, and sent in the code. Some were even allowed to call in a code after the ordered it.

Basically almost everyone who bought a Tesla...over 100,000 used a code at Tesla's prompting...no test drives from friends...no direct social interaction etc....I would have done the same thing, if I were not already an owner. Tesla also changed the referral code to include social media outlets with many tens of thousands of subscribers and required only 50 people using codes to qualify for a 250 K car. This was a dramatic change of many many many magnitudes from previous renditions of the referral program at a time when they did not even need it. This created a windfall for Tesla social media providers who were really the only ones in a position to get the attention of those who order Tesla's in large numbers...and during only a very small time span...then back to nothing. It was so easy, virtually all of the established social media providers ended up with one or in many cases 2 quarter of a million dollar cars in weeks or months. 50 is a lot for a regular person with normal social outlets. It is nothing for those with a hundred thousand listeners.

I don't believe podcasters are really talking people into buying cars and I don't care how many referrals are used, I am convinced this made virtually no difference in sales. Many were just news suppliers...no sales pitch. Tesla had to know how this would turn out..they are smart and it seems obvious to me. This whole thing has been about getting Roadsters in the hands of the main social media providers

I really think the reason is... Elon wishes the Roadster to be proof that electric cars can be better faster...and go farther. I believe this was an intentional way to show the world the Roadster's capabilities through massive social media exposure when they come out...virtually every main social media provider has now qualified.

So though I do not think social media providers have yet "earned" Roadsters by selling model 3's S's and X's, I think they will earn them by providing massive exposure when they do get them, showing the world what amounts to the greatest car ever made.

 

[DriveMe]

I think from the business standpoint the referral program made sense when the company was a small startup not known to everyone. This was an easy way to spread the word and recruit an army of bloggers and YouTubers, to go viral.

But today when almost everyone has already heard of Tesla, when the company has surpassed many traditional automakers in valuation, when the Model 3 is outselling every other car in its class, what’s the point of referral? It’s no longer effective.

 

[Super_Popular]

Tesla is thinking with Supercharger V3 and 2170 updates these cars will just sell themselves. I have huge expectations.

Someone needs to get on twitter and ask Elon when this is happening.

 

[Ludalicious]

I can understand that they will reduce the costs of the program, but being able to earn perks is what motivates people. So bad idea.

This program was flawed from the get go. Maybe we can stop seeing these so called car gurus who use well calibrated butt dyno's on their YouTube channels. My referral was given to some random also and I never gave consent either. Such a waste of time.

 

[jboy210]

I think from the business standpoint the referral program made sense when the company was a small startup not known to everyone. This was an easy way to spread the word and recruit an army of bloggers and YouTubers, to go viral.

But today when almost everyone has already heard of Tesla, when the company has surpassed many traditional automakers in valuation, when the Model 3 is outselling every other car in its class, what’s the point of referral? It’s no longer effective.

I agree. Also, with so many people on YouTube posting videos and showing their referral codes IMHO it comes off a bit like begging.

 

[Tic-tac-toe]

There is a Tesla showroom at just about every mall around here. Usually if there is an Apple store, there is a Tesla showroom nearby. Around where I live, I suspect it’s the showrooms that sell most cars not referrals. Why have a program that doesn’t sell cars?

 

[Brando]

He'll come back ... new:
Referral Program

Huge, huge industry 80-100,000,000 vehicles annually depending how you count.
Tesla has far far more bad press than good. I still have friends think Tesla a government hand out scam.
So it will take time ... one convert at a time ... as only actual experience will combat the fake news.
Count your blessings, spread the word, keep up the good fight, don't get discouraged. You may have yours and others that have the money may soon be joining you. Big auto doesn't seem to want to risk change so we'll have to wait for it to really, really hurt.

Used Teslas will slowly start increasing in volume and that will help.