Tesla is bringing back its referral program to Europea strategy that leverages customers’ brand loyalty as it seeks to preserve market share and increase sales before the close of the first quarter of 2023.
The referral program follows Tesla’s move to lower prices in a variety of markets, including Europe, China and North America.
Starting Tuesday in Europe, new Tesla buyers can receive 100 so-called “Loot Box Credits” when referred by a current Tesla owner, who will earn 2,000 credits for the referral. If the referred customer receives the delivery before March 31, 2023, he will get a bonus of 5,000 free SuperCharge kilometers and the shipper will get 10,000 credits. Those credits can be redeemed for software upgrades, up to 10,000 kilometers of free SuperCharge “and more.”
Tesla has never used traditional advertising, so the company has historically used its referral program to get its loyal customer base to endorse vehicles. Those rewards have changed in recent years. At certain points, owners could earn rewards, such as launching a photo of their choice into deep space orbit, an invite to an upcoming Tesla event, or even free new Roadsters for owners who accumulated enough referrals.
Tesla realized that such extravagant rewards were starting to hurt profits, so in 2019 the automaker halted the program and returned with a more reasonable one that gives the referred giver and recipient 1,000 free SuperCharge miles each. .
Last November, Tesla launched a revamped referral program in the US, which awards credits that can be used toward the purchase of Tesla solar products, such as the solar roof and solar panels. Tesla also launched a program in China called Treasure Box, where owners earn credits that can be used toward the purchase of accessories like vehicle chargers, t-shirts, or shot glasses.
The move in Europe suggests that Tesla is trying to maintain, or even increase, its dominant position in the market. Tesla was the most popular EV brand in Europe last year, with the Model Y and Model 3 topping the charts with 138,373 and 91,257 sales, respectively. It was followed by the Volkswagen ID.4 with 68,409 units sold, the electric Fiat 500 with 66,732 and the Ford Kuga plug-in hybrid EV with 55,018 sales, according to inside electric vehicles.
While Tesla was the most popular EV brand in Europe last year, it actually lags behind the big multi-brand OEMs. Volkswagen Group, which includes brands like Audi and VW, actually has the largest plug-in electric vehicle market share at 20.6%. They are followed by Stellantis, BMW Group and Hyundai with 14.6%, 10.5% and 10.1%, respectively. Mercedes and Tesla are tied at around 9% share.
As of this week, Tesla has finally reached production capacity of 5,000 vehicles per week at its Berlin gigafactory, a milestone CEO Elon Musk had originally promised by the end of 2022. While the production numbers don’t equal sales, increased production in Europe may help the automaker keep your position and gain even more market share in the future.
The referral program isn’t the only move Tesla has made to boost sales, particularly before it reports quarterly earnings. In January, Tesla cut prices for Model 3 and Model Y vehicles in the US and Europe by 20%. Earlier this month, the automaker also slashed prices for the Model S and Model X in the US.
In December 2022, Tesla also offered rebates of up to $7,500 for vehicles purchased and delivered before the end of the year in hopes of attracting buyers who would otherwise wait for the new year when the Tax Reduction Act incentives would take effect. inflation.
