Tesla is shifting gears on its referral program, specifically for the Model 3 and Model Y buyers. Until recently, Tesla owners and buyers could earn 2,000 credits for a Model 3 or Model Y referral or purchase. The newly minted change will now allow owners to pocket 10,000 credits for referring someone to a Model 3/Y purchase.
In contrast, Model 3 and Y buyers will not accumulate credits; instead, they will get a $500 price cut and three months of Full Self-Driving (FSD) trial. The awards for Model S and X buyers remain the same at $1,000 off and a 3-month FSD trial.
Enhanced Autopilot and FSD Removed as Rewards
Unfortunately, there are also some drawbacks in these latest updates. Tesla has removed Enhanced Autopilot and FSD as referral rewards. This is a significant blow as these were some of the most attractive awards if you could accumulate enough credits. FSD previously required 120,000 credits.
However, the FSD trial promises an exciting opportunity for new owners to experience a key feature of Tesla's software ecosystem. It includes Navigate on Autopilot, Auto Lane Change, Autopark, and Smart Summon. Unfortunately, owners who receive a vehicle with hardware 4.0 will not be able to activate FSD Beta in the U.S. and Canada yet until HW4 is supported.
Referral Program Limit
Along with these reward updates, Tesla has also imposed a strict limit on the number of referrals an owner can obtain.
According to Tesla's updated terms, owners are now limited to five referrals per calendar year. So while Tesla is increasing the rewards for Model 3 and Model Y referrals, owners will not be limited to the five referrals across all of their products, including solar. Tesla's referral program continues evolving, so this could also change at any time.
Although an owner is limited to five referrals per calendar year, a buyer may continue to use any referral code to be eligible for the discount and free FSD trial, even if the owner has already met the referral limit.
Tesla China Cash Rewards Program
Tesla also has plans to enhance its cash rewards program in China. The U.S.-based automaker's cash rewards in China operate similarly to its referral program in the United States. Existing Tesla owners who refer the company's cars to others could receive cash rewards if the recommendation concludes in a vehicle sale. The updated referral program will be applied to Model 3 and Model Y sales in China.
Implications for Tesla's Ecosystem
The changes to Tesla's referral program have significant implications for its broader ecosystem. Firstly, the revamped rewards incentivize owners to preach Tesla's products, increasing the brand's word-of-mouth publicity. It also adds value for the new owners, who now get a price reduction and the chance to experience the FSD trial.
Besides the referral limit, these changes do not appear to affect Tesla's Solar Roof and Solar Panel referral program. Similarly, the recently adjusted referral program for Model S/X, offering 20,000 referral credits, a cash discount, and a three-month trial of FSD, remains unaffected.
The revamp of the referral program showcases Tesla's strategy to enhance customer experience and increase the uptake of its vehicles. For referring owners and new buyers, it's clear that Tesla aims to deliver more value and improve the benefits of being part of the Tesla community.
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It has been a long wait for FSD for European customers, many of whom paid for the feature years ago on now legacy hardware. While the FSD transfer program has come and gone multiple times, there’s something to be said about having it available in North America, where it can be used, and in Europe or other countries, where it still just remains the same as Enhanced Autopilot (differences between Autopilot, EAP, and FSD).
FSD Transfer is a nice goodwill gesture from Tesla that in theory doesn’t cost them anything. Instead, it keeps customers, especially those who have been waiting for years, loyal and happy. It also incentivizes them to upgrade to a newer Tesla with HW4, where FSD will hopefully be achieved.
In a reply to a post on X, Elon agreed with the suggestion that offering FSD transfers in Europe would be a fair solution for those who have already purchased FSD but can’t use its capabilities.
FSD Transfer directly addresses a growing concern for many long-term European Tesla owners. Thousands of customers purchased the full package, often many years ago, with the expectation that FSD would eventually be capable and approved for use. However, the reality is that FSD, even as an advanced driver assistance system (ADAS), continues to be pushed back in Europe.
Without the transfer program, it's a difficult choice: either throw away your original investment in FSD and pay for the package a second time (FSD price history), or subscribe to it in the future.
Offering FSD transfers is a good way for Tesla to meet them halfway. It's a difficult situation, and one that’s being hindered by processes beyond the control of both the customer and Tesla. However, a transfer helps both parties. Tesla sells another vehicle, and the customer gets to keep FSD.
When Will it Be Available?
Based on how FSD transfers have worked in the past following Elon’s announcements, this feature is likely to become available for a limited time period in the coming days or weeks. If it happens, we should expect an announcement from Tesla Europe on X and emails being sent out to Tesla customers.
Once the program is in place, all you need to do is complete your vehicle purchase and then inform your Tesla sales advisor that you’d like to transfer FSD. You don’t even have to sell or trade in your old Tesla; FSD will simply be removed from it as a feature.
Hopefully, Tesla enables FSD Transfers for everyone, regardless of region. It should be an ongoing offer until at least FSD is approved in the given country or region.
The introductory price for Tesla’s Robotaxi Network has finally been updated. In a post on X, Elon Musk confirmed that the new fare would be rolling out to complement the new Robotaxi geofence expansion.
This change marks the first adjustment to Tesla’s fares since the initial $4.20 launch price 23 days ago. While the price increase may seem significant in terms of percentages, when compared to other options in the ride-hailing area, it is still drastically cheaper.
But the price is now a princely $6.90, as foretold in the prophecy 😂
Robotaxi currently operates on a simple, flat-rate model. The new $6.90 fare gets you a ride to anywhere within the recently expanded geofence.
So far, this is the opposite approach compared to other services, such as Waymo or traditional ride-sharing options like Uber and Lyft. All these services use dynamic pricing based on distance, time of day, and demand. A comparable trip on any one of these services could cost anywhere from $30 to $65, and potentially even higher during peak hours.
That doesn’t even include the tip fees for human drivers either - another win for Robotaxi (can you tip a Robotaxi?).
Even with the adjustment, the flat $6.90 fare remains less than half the price of a typical competing ride, making Robotaxi the most affordable point-to-point transportation option in Austin, aside from mass transit, for now.
A “Maturing” Service
The price change, moving from one meme-worthy number to another, is a sign that Robotaxi is finally graduating from its initial pilot phase. Following the first major expansion of the service area, this adjustment is a logical next step towards finding a more sustainable flat price.
While the new fare is a 65% increase over the old fare, the key takeaway is that it is still far cheaper than other options, and still just as meme-worthy. Tesla is aiming to have its early access riders complete as many rides as possible during these early months, and this pricing is still very reflective of that.
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