Tesla revamps its rewards program, offering $1,000 off a Model S or Model X and 3-months free of FSD
Tesla
Tesla continually finds new ways to engage and incentivize customers. Tesla recently updated their app to v4.21.5, which takes a strategic leap by boosting their already popular Referral Program. Under the new terms, referrals leading to the purchase of a Model S or Model X will result in monetary rewards and an extended Full Self-Driving trial.
Tesla Model X and S Receive Considerable Incentives
Tesla's innovative move targets the Model S and Model X. Any customer purchasing these models through a referral will be granted a hefty $1,000 off their purchase. Furthermore, these customers will receive a complimentary 3-month trial of Tesla's FSD Beta, giving them a firsthand experience of the cutting-edge autonomous technology Tesla offers.
In return, the referrer will be rewarded with a substantial 20,000 credits. This marks a remarkable increase from the previous 3,500 credits, extending the potential rewards a Tesla owner can accrue through the program.
Model 3 and Model Y Credits
The more affordable Tesla models, the Model 3 and Model Y's rewards will remain the same. Referrers will receive 2,000 Loot Box credits per referral, while buyers can bank 1,500 credits. These credits can be used to access a variety of perks, including vehicle upgrades, merchandise, features, and other accessories. For instance, one can secure a Home Charging Wall Connector using these credits.
However, it is important to note that the credits come with an expiration date. Customers must utilize their credits within a year of the Grant Date, ensuring timely utilization of these rewards.
Rewarding Yourself
The updates to the Referral Program continue to include the option to reward yourself. Tesla owners who purchase an additional Tesla vehicle, Model S or Model X, using their own Tesla account will qualify for the same incentives as a referred purchase. This includes both the $1,000 discount and the 3-month FSD trial. If they buy a Model 3 or Model Y, then the buyer and referral credits get added together, and the buyer gets 3,500 credits. This addition shows Tesla's commitment to rewarding customer loyalty.
All these exciting offers come with a limited-time tag. They are valid only for orders placed before June 30, 2023, intensifying the push for interested customers to move quickly.
The question on everyone's mind is, how will these changes impact Tesla's sales figures for the next quarter? Tesla's reliance on customer advocacy rather than traditional advertising has proven fruitful before, and it is possible that these generous new offers could give the company's sales a significant boost.
The unique combination of financial rewards, high-tech trial experiences, and the self-purchase referral incentive underlines Tesla's commitment to innovation, not just in their vehicles but in their customer engagement strategies.
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There has been extensive reporting on what the long-anticipated affordable EV option would become, and we’ve seen numerous news stories mentioning that it was delayed or even arriving on time. The executive team revealed the near-term and long-term plans for Tesla’s upcoming vehicles, and there’s definitely good news to share here.
Updated Timeline
The most important piece of news is that despite all the talk of delays from supposed inside sources, Tesla has confirmed that the plan for its more affordable model remains on schedule for production to begin in the first half of 2025. Tesla’s executive team narrowed that timeline down further - and said that they expect production to kick off as soon as June and that the new model will be in the market shortly thereafter.
While the production timeline itself is on track, Tesla did note that the subsequent ramping process will likely be slower than initially hoped, citing global tariff and financial impacts as challenges to overcome to prepare its production lines.
Hybrid Production Approach
Tesla has once again confirmed that this will not be their next-generation vehicle, built using new production methods. Instead, they outlined a relatively more pragmatic approach for this new model.
Tesla will utilize aspects of both the next-generation platform as well as some parts of its current platforms (namely the Model 3 and Model Y). This means that Tesla will produce this new vehicle on the same manufacturing lines as the Model 3 and Model Y.
This strategy allows Tesla to bring the vehicle to the market more quickly, while also managing capital expenditures more efficiently by using existing infrastructure. However, Tesla’s executive team also noted that this approach, while faster, will result in fewer cost reductions than what might have been achieved with an entirely new platform and dedicated manufacturing process.
Vehicle Design
Using these existing production lines means that Tesla’s new vehicle will likely share some considerable similarities with either the existing Model 3 or Model Y. Rather than being a radically different and smaller vehicle, this new model will resemble the overall form factor and shape of Tesla’s current core offerings, while being optimized for a lower cost.
This doesn’t mean that Tesla is forgetting the overall goal here. Their ultimate goal is to reduce the initial cost of ownership and lower monthly payments for customers while maintaining a standard of excellence and safety.
Not Unboxed
Both at this Earnings Call and previous ones, Tesla has indicated that this new vehicle will not be using the innovative unboxed assembly method, at least for the time being. That relatively unique method will be developed and implemented specifically for the purpose-built Cybercab and for future vehicles on the next-generation platform.
We’re just a few days away from May, so it won’t be long before we see more about this upcoming vehicle. Stay tuned.
In a follow-up move to the current US administration’s goals to introduce a federal framework for autonomous vehicles, the US Department of Transportation (USDOT) is loosening autonomy restrictions following an announcement from Secretary Sean Duffy on X. This new initiative helps streamline complex regulatory processes and foster home-grown innovation.
From the Wright Brothers to the first astronauts on the moon, our nation has always been at the forefront of transportation technology.
That’s why today we're unveiling a new Automated Vehicle Framework from @USDOT’s Innovation Agenda ⬇️ ⬇️ pic.twitter.com/W3kbMUwQSn
As part of the broader upcoming USDOT Innovation Agenda, the newly unveiled AV Framework is designed to promote American innovation and strengthen domestic engineering while maintaining existing safety standards. The framework centers around three key principles:
Prioritize Safety
Unleash Innovation
Enable Commercial Deployment
To kickstart this AV framework, USDOT announced two initial steps focused on streamlining processes and expanding opportunities.
Crash Reporting Requirements
Under the first principle to Prioritize Safety, the National Highway Traffic and Safety Administration (NHTSA) will maintain its Standing General Order requiring crash reporting on Advanced and Automated Driver Assistance Systems (ADAS and ADS).
However, the reporting process will be streamlined following feedback from AV innovators, likely including Tesla. The goal here is to focus on collecting critical safety information while removing unnecessary or duplicative items from the reporting process, thereby reducing the burden without compromising safety.
Cutting Red Tape
Directly tied to the second principle of Unleash Innovation, the framework also seeks to slash red tape. The first step here is the expansion of the Automated Vehicle Exemption Program, or AVEP. This program allows manufacturers to petition for temporary exemptions from certain federal motor vehicle safety standards (FMVSS) for testing or deployment purposes.
Previously, the standard excluded domestically produced vehicles. Now, domestically produced AVs will not need to meet FMVSS, which will broaden the scope for manufacturers to test more innovative and unique designs and technologies.
Single National Standard for AVs
Finally, tied to the third principle of Enable Commerical Development, USDOT intends to move the United States closer to a single national standard for autonomous vehicles. This aims to prevent a confusing and inefficient patchwork of state-level or city-level laws and regulations, which can create hurdles for companies attempting to innovate, deploy, and scale their technology.
A unified standard across the United States also means that Canada and Mexico will likely be able to follow, as they share homologization standards across North America, including for vehicle crash safety and some autonomy regulations.
What This Means for Tesla
These framework changes will likely have a substantial impact on Tesla. The move towards a national standard is potentially the most impactful change, as Tesla identified regulatory hurdles as one of the most significant challenges it will face with the deployment of both Unsupervised FSD and its Robotaxi network.
The reduction of FMVSS requirements and streamlined reporting will likely play a role in the future as well. The FMVSS requirements are probably already being worked on, if not already met, by the Cybercab and other vehicles in Tesla’s lineup.
Meanwhile, the streamlined reporting will be helpful once Tesla officially launches its Robotaxi network in June.
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