Tesla launches referral reward mechanism, which may become a 'disguised price reduction' strategy

According to news on July 7, 16 mainstream car companies jointly signed the "Automotive Industry Commitment to Maintain Fair Market Order" under the witness of relevant departments, including FAW, Geely, Great Wall, BYD, Weilai, Ideal, Xiaomi Peng, Tesla and other car companies. The letter of commitment requires each car company not to disrupt the order of fair competition in the market with abnormal prices. As far as the editor knows, the purpose of this move is to promote fair competition in the automotive industry while ensuring the stability of the market order.

It is worth noting that according to Xu Changming, deputy director of the National Information Center, at the China Automobile Forum, Tesla Motors’ average profit per vehicle reached 75,524 yuan (approximately US$10,426) ), compared with BYD's bicycle sales of more than 1.86 million units last year, the average profit was only 8,854 yuan. Tesla's significant advantage is its scale effect, and as Tesla's scale further expands, costs are expected to decrease. Tesla will deliver a total of 1.31 million vehicles in 2022, a year-on-year increase of 40%. This year's goal is to deliver 1.8 million vehicles. In fact, their internal production potential is close to 2 million vehicles. Despite force majeure factors such as supply chain disruptions, Tesla still believes it can produce 2 million vehicles this year.

In addition, Tesla recently announced a new referral reward mechanism, which is to place orders for Models by introducing relatives and friends. 3/Y When you pick up a car simultaneously, both the car buyer and the referrer will receive corresponding rewards. This move has also been interpreted by some as Tesla's "disguised price reduction" strategy. Previously, Tesla had launched a S/X’s referral car purchase reward program.

To sum up, China’s automobile industry has taken an important step in maintaining a fair competition order by jointly signing a letter of commitment to ensure a fair competitive environment in the market. Tesla has demonstrated strong competitiveness, and its scale effect and high profit margins give it a clear advantage in the new energy vehicle market. Tesla is continuing to expand and demonstrate in-house production potential, hoping to reach its goal of producing 2 million vehicles this year. The introduction of a new referral reward mechanism is also a strategy for Tesla to increase sales. China's automobile industry will continue to be committed to promoting fair competition and sustainable development, and will continue to pay attention to this trend.

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