Tesla Owners May have to Pay to Drive

For many years, the Tesla brand has offered its customers a variety of free features and items that make a difference in the drive.

Those who purchased a Tesla Model S or Model X in the past were allowed to use the Tesla Supercharging stations for free, but that program has since ended and has been replaced by a customer referral program. Now, it seems the customer referral program won’t be offered any longer and Tesla owners of the future will have to pay to drive these vehicles.

Cutting into Profits

The current referral program allowed customers that referred another to purchase a new Model S, Model X, or Model 3, to enjoy the benefits of free Supercharger access, free vehicle upgrades, or even a free Tesla Roadster when the vehicle does go into production. This current program was scheduled to run until March 11, but as of February 1, the program will end and Tesla has no intentions of adding a new referral program to the mix. It’s time for Tesla customers to simply love Tesla because of the vehicle they drive and not because of the freebies being offered.

Abusing the Referral Program

Not only was the referral program cutting into profits, which should have been obvious, but there were some different tiers of referral customers that would promote their referral codes to massive audiences to gain more influence. These were called mega-influencers and were rewarded with high-value prizes that would cost the company to allow them to offer the referral. This referral program abuse had to end and Elon Musk has made the decision to cut this program entirely in order to protect profits and allow the company to begin to capture the profit margins desired.

Disappointment in Profits

You would think that turning profits would make investors happy. Tesla was able to produce 86,500 vehicles in the most recent quarter and received $311.5 million, but this wasn’t enough to make the investors confident in the brand. The delays in customer deliveries have caused the Tesla team to eliminate some of the lower-priced models and adjust the price of the Model 3 to ensure profits and margins would increase. Of course, this also means ridding the company of the referral program which cuts into profits in a big way because there aren’t many ways this program is being subsidized.

Will this Work?

Will we see more Tesla owners fall in love with their vehicles and understand they have something great to drive or will owners trade their Tesla models to choose a different brand for the future? Without the incentive of potential free charging, upgrades, or other prizes through the referral program, it might be difficult for Tesla to continue to garner the following that’s been built over the past several years. Additionally, Tesla is still a long way from reaching the ability to build 500,000 vehicles per year or more, which looms over their heads in a big way.