Tesla rolls out incentive programme to boost sales

The move comes as competition heats up in the electric vehicle market

New cars leave Tesla's factory in Shanghai, China. The EV builder is pulling out the stops to promote sales in all its markets. Reuters
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Electric vehicle manufacturer Tesla has rolled out a worldwide programme that allows buyers extra incentives through referrals from existing customers as the company tries to boost sales in the face of increased competition.

The incentive, Refer and Earn, is equivalent to $500 in cashback for buyers in the US who purchase the Model 3 or Model Y through a referral, the company said on its website. The programme includes three months of Tesla's Full Self-Driving feature.

“As an owner, every time you bring a new friend or family member into the Tesla community, you and your friend both benefit – you earn referral credits and your friend may receive buyer cash awards and exclusive referral benefits with their purchase,” Tesla said.

The move comes as competition heats up in the EV segment around the world as green transition efforts increase.

Tesla has already announced a reduction in the prices of its cars in a bid to increase sales.

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This month, the car maker cut prices of its premium car models in China by more than 4.5 per cent to increase sales in the world's second-largest economy.

It has also lowered prices in other markets, including the US and UK, in an effort to gain an advantage over its competition.

Global electric car sales are set to surge by 35 per cent this year, helped by government subsidies and the tightening of carbon dioxide emissions standards, the International Energy Agency has said.

Electric car sales are projected to reach 14 million in 2023 from 10 million last year with its share in the overall market forecast to rise to 18 per cent this year, from 14 per cent in 2022 the Paris-based agency said in its Global Electric Vehicle Outlook in April.

The Elon Musk-owned company delivered 466,140 vehicles in the period of April to June, up 83 per cent compared with the same period a year earlier, the company said last week.

The company produced 479,700 vehicles during the period, including 19,489 model S/X cars and 460,211 model 3/Y cars. In the same period last year, it produced 258,580 vehicles.

Updated: July 08, 2023, 8:18 AM