On Friday, Tesla said that it would offer new buyers of its best-selling electric vehicles in China a cash incentive of over $500 if they get a reference from an existing owner.
If a potential customer can provide a referral from a current Tesla owner, they will receive a cash rebate of 3,500 yuan ($483) toward the purchase of a Model Y or Model 3.
Tesla’s base price for the Model 3 car in China has been reduced by 14% since the beginning of the year, and the base price for the Model Y, its global best seller, has been reduced by 10%.
Also, Tesla promised that its driver assistance system, Enhanced Autopilot, will be available to new buyers for free for the first 90 days after purchase.
The rebate announcement came just one day after Tesla and 15 other companies, including Chinese electric vehicle (EV) manufacturers Nio, Li Auto, and Xpeng, pledged to avoid “abnormal pricing,” which was seen by some as a ceasefire in a price war that had threatened industry-wide profitability.
Rebates on Model S and X Automobiles
The cash discounts were posted on Tesla’s Weibo account on Friday. Rebates of 7,000 Yuan, initially promised in June, are still available to Chinese customers who purchase the company’s more expensive Model S and Model X automobiles.
On Friday, a number of Tesla owners shared their referral codes online, encouraging others to make use of them and potentially receive the $1,000 back.
As of this week’s data dump, Tesla had sold a record 247,217 vehicles assembled in China during the second quarter. Since early 2020, when vehicle deliveries began from its Shanghai facility, that was the highest level.
More than half of Tesla’s global deliveries in the second quarter were of Shanghai-assembled vehicles.
Since the beginning of May, the company’s stock price has increased by about 70% as investors responded positively to signs that the company’s global price reduction and U.S. government incentives were increasing sales and placed bets that the EV manufacturer could eventually stabilize its profit margin.
Source: REUTERS Via MSN