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Tesla engages electric car customers to drive sales, save costs

Referral program success could prove valuable for Tesla and its customers, while driving down car costs.

July 31, 2015

Electric car maker Tesla is traversing an old familiar retail marketing philosophy — word of mouth — to spur car sales and consumer savings. Its founder also aims to make it worthwhile for its customers to talk up fleet features.

Tesla Model S sedan owners who refer a new buyer will get a $1,000 thank you credit, and if they refer more friends the bounty reward gets even more lucrative. The money can be used toward a new car purchase, services or car accessories, according to a Reutersreport.

The simple, yet obviously customer-engaging marketing strategy could expand if it proves successful. Tesla chief Elon Musk described the approach as “a guerilla tactic” given his company is not allowed to sell its cars directly to customers in some states.

The marketing program, which will run through the end of October, could be expanded to used car sales if it proves valuable, according to Reuters.

"If we can amplify word of mouth, then we don’t need to open as many new stores in the future," Musk stated in a letter to Tesla owners announcing the referral plan.

Sedan owners who refer 10 viable actual buyers will have a chance to buy a limite-edition "Founders Series " Model X at a very discounted price. The car is heading into production this coming fall. In addition, the very first Model X owner to refer the successful sale of 10 will get a Model X for free.

If a car owner falls short of the 10 referrals, but gets at least five, those car owners are invited to the grand opening of Tesla’s Gigafactory battery factory.

In an email sent to customers Musk stated “Word of mouth has always been a major part of how Tesla sales have grown. When I meet Tesla owners, one of the first things they often tell me is how they have convinced many others to buy the car.”