On Wednesday, Tesla announced that it would be offering its customers a 1,000 dollars incentive for referring new clients to the company.
The bounty program works both ways. Both the owner of a Model S Tesla vehicle and the newly referred owners would receive the credit upon purchasing a Model S vehicle. For the veteran owners, the credit would translate into discounts upon purchasing on a new vehicle, in servicing costs or accessories and upgrades related costs.
According to CEO Elon Musk, the program is opened until the end of October, 2015 and may be prolonged depending on the results. While it is not a novel tactic with conventional automakers, it certainly is a new strategy for the electric vehicle manufacturer which is set on bypassing typical partner deals and strongly upholds the idea that the luxury vehicles would not be purchased through partner vehicle dealers.
As such, a small incentive is just what the company needs in order to maintain its tactics, according to Elon Musk, who also commented that the program stands for a:
“guerilla tactic against car dealers in certain states. If we can amplify word of mouth, then we don’t need to open as many new stores in the future”.
Thus, already proud owners of Tesla’s Model S would receive 1,000 dollars in credit to use according to their needs: servicing the vehicle, purchasing accessories or parts or upgrading. Moreover, Elon Musk announced that the credit can also be used as a discount from the price of the upcoming Model X SUV.
Referring ten new customers, and receiving a 10,000 dollar discount for the new Model X is a good bargain. The limit of customers that can be referred is set at 10. New customers receive the 1,000 dollars credit as a discount on Model S’s price tag.
According to analysts, Tesla’s strategy might indicate more than a guerilla tactics. It might pinpoint the fact that the automaker is reaching a peak point in the luxury car market. As it goes about sparing itself the trouble of opening new stores by establishing the bounty program, the clues add up to support this idea.
In the first half of 2015, Tesla already sold 8,950 vehicles on the U.S. market. During the same period in 2014, sales were 1.6 percent higher. Compared to the 4.4 percent sales rise experienced by the auto industry this year, Tesla’s numbers do look as if the company it had reached a sales saturation point.
The bounty program lasts throughout October. Further results are expected to be announced as the program comes to a draw.
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