Tesla, looking to conquest, offers cash bonus in key markets

Tesla rolled out a new incentive globally allowing buyers to earn extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

The cash rebates are applicable in markets including the U.S., China, Canada, the U.K., France and Germany, according to Tesla’s regional websites on Friday.

The incentive, which Tesla calls “Refer and Earn” on its websites, is the equivalent to about $500 in cashback to new buyers in the U.S., who purchase Model 3 and Model Y, as well as three months of its Full Self-Driving feature.

In the U.K., buyers using a referral will receive a discount of 1,000 pounds ($1,278.00) on Model S and Model X starting July 7, the company’s website showed. The discount was for 500 pounds for Model 3 and Model Y.

Legacy automakers have historically used employee and loyalty discounts to lower the sticker price of cars. Tesla up to now has focused on real-time adjustments to prices posted on its websites

The EV sales market globally has become more competitive, forcing automakers to cut prices or boost incentives in several markets.

EV production ramp-up issues are likely to be widespread among traditional automakers as they attempt to execute aggressive growth plans, CFRA analyst Garrett Nelson said on Thursday.

Tesla remains a “compelling” growth story thanks to its growing vehicle production at plants in Texas and Germany, the upcoming launch of the Cybertruck pickup and construction of another plant in Mexico, Nelson said.

Tesla, which aggressively cut prices since late last year starting in China, has slowed price cuts on its new orders but increased discounts on its already made cars.

The automaker delivered a record number of vehicles in the second quarter, topping market estimates.

Tesla CEO Elon Musk in April doubled down on the price war, saying the company would prioritize sales growth ahead of profit in a weak economy and rising competition.