Tesla updates referral and loyalty programs again

Tesla has rolled out another broad update to its Referral and Loyalty programs. Shoppers hoping to use a friend’s referral link to take cash off a flagship purchase can no longer do so.

The company has removed the outgoing Model S and Model X from referral rewards and reduced loyalty savings, while also trimming perks for Cybertruck buyers and cutting the existing-owner loyalty discount.

End of Model S and Model X Referrals

The headline change is that Tesla’s outgoing flagship vehicles no longer qualify for referral benefits. Previously, buyers who used a referral link to purchase a new Model S or Model X received a $1,000 discount applied to the purchase price. That benefit has now been removed.

Using a referral link to buy a Model S or Model X today no longer provides an upfront cash discount. Since these vehicles still include the Luxe package, which still includes FSD, there is also no FSD trial with the purchase. Removing discounts on these vehicles aligns with Tesla beginning to wind down production of the Model S and Model X ahead of replacing the line with Optimus, its humanoid robot.

Cybertruck Loses Cash Discount

Referral incentives for Cybertruck have also shifted. Buyers of the Cybertruck Premium AWD or the tri-motor Cyberbeast using a referral link will no longer receive the $1,000 referral discount. The Cybertruck Dual Motor already had its referral benefit removed earlier, when the pricing was raised from $59,990 to $69,990.

Instead of a cash discount, buyers who use a referral code will now receive 3 months of Full Self-Driving (Supervised). This aligns the Cybertruck’s referral perk with the incentives currently offered on the Model 3 and Model Y.

The change is positioned to put FSD in more owners’ hands so they can experience it during the trial and potentially subscribe afterward.

Loyalty Discount Slashed

Existing owners are also affected. Tesla’s Loyalty program, which rewards current owners for purchasing an additional qualifying vehicle under the same Tesla account, has been reduced for premium vehicles.

Previously, existing owners received a $1,000 loyalty discount when purchasing a new Model S, Model X, or eligible Cybertruck. That discount is now $500. As with the referral changes, the entry-level Cybertruck Dual Motor AWD is not eligible for this $500 loyalty discount.

Focusing on Margins

Tesla has iterated on its referral program for years, at times shutting it down entirely and later bringing it back with richer perks, and it may change again.

For now, the company appears to be prioritizing margins by removing the $1,000 cash discounts on its most expensive vehicles and cutting the loyalty discount in half.

Substituting cash discounts with FSD trials avoids physical costs while serving as a marketing tool to increase FSD subscription rates.