Tesla Giving Out Free Cars, Referral Discounts In New Incentive Program

Jul 30, 2015 11:50 AM EDT | John Nassivera

Tesla Motors is looking to obtain more electric car customers with a new incentive program designed to provide a variety of opportunities for potential buyers.

This program includes a chance for a few people to get the new Model X SUV for free, as well as the chance to get $1,000 off for buying a Tesla based on word-of-mouth from current owners, according to TechCrunch.

Tesla CEO Elon Musk said in an email to Model S owners that they will receive a link that they can share with those who may buy the car in the future. Those who buy a car through the link can get $1,000 off the price, and the referrer will receive $1,000 in credit towards a new Tesla, accessories or service center visits.

The email added that those who make five referral orders will be invited to Tesla's grand opening party for its new gigafactory that is currently under construction in Nevada, and those who make 10 referral orders will have "the right to purchase" a special edition of the Model X for the price of the regular base model. The electric automaker will provide a free Model X to the first person to make 10 referrals in North America, Europe and Asia.

Drivers looking to get their hands on the Model X will have to wait until this fall to get the electric SUV, CNBC reported.

Musk said that the goal of the incentives is to see if Tesla could use social marketing tactics more often and open fewer retail locations. It currently costs the company around $2,000 to sell a car through one of its stores. He added that the program is based on one he did at PayPal, one of his first startups.

"I'm not entirely certain at all if it will work or not," Musk said. "But I think it's worth trying out because if it is a fundamental improvement of cost of scale and we can pass it along to customers, I think that's just really a good thing."

The program could also help Tesla boost sales in states where car companies are banned from directly selling to buyers, TechCrunch reported. Automakers are instead required to sell through third party dealerships or online in these states.

Musk said the first test run for the program will end on Oct. 31.

"I have no idea if this will work or not," he said. "If it works out, that's great. If not, we'll say 'that was a great experiment' and move on."

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