Tesla has quietly made another sweeping round of changes to its Referral and Loyalty programs. If you were planning to use a friend’s referral link to score some cash off the price of a flagship vehicle, you are now unfortunately out of luck.
It looks like Tesla is trying to increase profit margins and shift incentives towards FSD adoption. Tesla has removed the outgoing Model S and Model X from the referral program and lowered the loyalty discount, while simultaneously cutting the perks for Cybertruck buyers and slashing the existing owner loyalty discount.
End of Model S and Model X Referrals
The most glaring change is the removal of Tesla’s outgoing flagship vehicles from the referral program. Previously, buyers using a referral link to purchase a new Model S or Model X received a $1,000 discount applied directly to their purchase price. As of this latest update, that perk has vanished.
If a new buyer uses a referral link to purchase a Model S or Model X today, they will no longer receive an upfront cash discount. Since these vehicles still include the Luxe package, which still includes FSD, there’s also no FSD trial with the purchase. Removing the discounts for these vehicles isn’t unexpected as Tesla begins winding down production of the Model S and Model X ahead of replacing the line with Optimus, its humanoid robot.
Cybertruck Loses Cash Discount
The Cybertruck is also seeing a major adjustment to its incentive structure. New owners purchasing the Cybertruck Premium AWD or the tri-motor Cyberbeast using a referral link will no longer receive the $1,000 referral discount. The Cybertruck Dual Motor already had its referral benefit removed earlier, when the pricing was raised from $59,990 to $69,990.
Instead of a cash discount, Tesla is pivoting to software. Buyers using a referral code will now receive 3 months of Full Self-Driving (Supervised). This aligns the Cybertruck's referral perk with the incentives currently offered on the Model 3 and Model Y.
It also indicates that Tesla is eager to get FSD into the hands of more owners so they can experience the system firsthand and hopefully become loyal subscribers once the trial expires.
Loyalty | Referrer | Buyer | |
|---|---|---|---|
Model S / Model X | $500 off | No perks | No perks |
Model 3 / Model Y | $500 off | $250 credit | 3 months of FSD |
Cybertruck (Excludes DM AWD) | $500 off | $250 credit | 3 months of FSD |
Demo Drive | - | $15 credit | No perks |
Solar Panels | No perks | $250 credit | $400 off |
Loyalty Discount Slashed
Existing Tesla owners aren't escaping the changes, either. Tesla's Loyalty program, which rewards current owners for purchasing an additional qualifying vehicle under the same Tesla account, has been reduced for premium vehicles.
Previously, existing owners received a $1,000 loyalty discount when purchasing a new Model S, Model X, or eligible Cybertruck. That discount has now been slashed in half to just $500. Just like the referral program, the entry-level Cybertruck Dual Motor AWD is not eligible for this $500 loyalty discount.
Focusing on Margins
Tesla has changed their referral program over the years. They’ve previously stopped it completely, only to bring it back with even better perks, so it seems like they’re still trying to figure out what works best. This is just another iteration of its referral program, and we could see it change again in the future.
However, for now, it seems like Tesla is focusing on increasing margins. By removing the $1,000 cash discounts on its most expensive vehicles and cutting the loyalty discount in half, Tesla is tightening its belt.
Meanwhile, substituting cash discounts for FSD trials costs the company nothing in physical capital, while simultaneously serving as a marketing tool to increase FSD subscription rates.
