Tesla Now Pays $1,000 For Referral Sales, First To Refer Ten Gets Free Model X

JUL 24 2015 BY STATIK 78

It is no secret that Tesla certainly doesn’t employ the ‘traditional’ sales model by any stretch.  The company doesn’t have hundreds of dealer franchises dotting the country – or even a advertising budget to speak of.

Tesla CEO Elon Musk Gets A Little Help With Promotion Via New Program

Tesla CEO Elon Musk Gets A Little Help With Promotion Via New Program

Promotion is achieved basically in 2 ways:

-via high profile CEO and showman Elon Musk
-word of mouth from Model S owners and EV advocates

A new referral program from the company looks to enhance the latter.

From now until October 31st, Model S owners who refer the company a new sale will receive a $1,000 credit (which can be used against the purchase of a new car, repair or accessory item), while the person actually purchasing the car will also get a straight $1,000 off the cost – essentially the first discount to be widely offered by Tesla on the MSRP.

In addition, for those who are really ambitious with the referral program, 5 referrals nets you “an invitation for them and a guest to attend the Gigafactory grand opening party”.

For the uber ambitious – 10 referrals, get you the option  to purchase a “fully loaded Founder Series Model X, which is not available to the public, for the price of a base-level Model X—roughly a $25,000 saving.” 

The first person to make ten referrals?  Well he (or she) gets a Model X for free.

Full Tesla press blast on the new program:

Referral Program

The First To 10 Referrals Gets A Tesla Model X - Gratis

The First To 10 Referrals Gets A Tesla Model X – Gratis

Anyone who orders a new Model S before October 31st using the referral link of a current owner will get $1,000 off the purchase price. In return, the current owner will get a $1,000 discount that can be applied to a new car, service center visit or accessory. Referral discounts are limited to ten and are awarded on a first to purchase basis. New orders must be placed prior to October 31, 2015.

In addition, those who make five referrals will receive an invitation for them and a guest to attend the Gigafactory grand opening party. Those who make ten referrals will get the right to purchase a fully loaded Founder Series Model X, which is not available to the public, for the price of a base-level Model X—roughly a $25,000 saving. The first person to make ten referrals will get a fully loaded Model X for free.

We know that without our customers we would not be where we are today. This is our way of thanking you for continuing to build the Tesla community.

Limits
You must be a current Tesla owner to make referrals and cannot refer yourself. Discounts will be available for you to use when your friend’s order becomes non-refundable. You can use discounts toward a service center visit for your Tesla, to buy accessories or even a new Model S. Discounts are not transferrable and cannot be used to make monthly payments, purchase pre-owned Model S, or reserve Model X.

Free Model X
The first person to refer ten friends in each sales region— North America, Europe, and the Asia-Pacific — will receive a free Model X. They will be invited to configure their Model X once all ten friends have taken delivery of their new Model S.

5 Referrals Will Not Only Put $5,000 In Your Pocket, But You Will Get An Invite To The Gigafactory Launch

5 Referrals Will Not Only Put $5,000 In Your Pocket, But You Will Get An Invite To The Gigafactory Launch

Gigafactory Grand Opening Party
The Gigafactory grand opening party will take place in Nevada at a date to be determined in April 2016. Customers who make five referrals will receive two tickets to attend the grand opening party. These customers will be responsible for the cost of their own travel, lodging, and other incidentals. Tesla will provide transport to and from Reno, Nevada for the grand opening party.

Redemption
Discounts will automatically be applied to the purchase price of any new Model S. Discounts on service and accessories will be available beginning August 15, 2015. Remaining discounts will expire on December 31, 2016.

Good Faith
We introduce programs such as these in good faith and expect the same good faith in return. Please note that we may withhold credits, discounts or other awards where we believe customers are acting in bad faith or otherwise acting contrary to the intent of this program. We cannot cover every nefarious scenario, nor will we attempt to, but we do promise to be fair and reasonable.

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78 Comments on "Tesla Now Pays $1,000 For Referral Sales, First To Refer Ten Gets Free Model X"

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Ambulator
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Ambulator

I guess that’s a $1,000 price drop. Anyone who buy a Model S should be able to get a referral from someone.

I’d feel better about this if Tesla was making a profit.

LusTuCCC
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LusTuCCC

Playing with words again? Tesla make big profits that are immediately reinjected in expanding the SC network, R&D, GF, ans sales all around the world. They make no more profits than Amazon does, continuously developping markets and seizing new opportunities.
Short your stock if you’re not satisfied.

sven
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sven

Wrong.

LusTuCCC, put down your Tesla pom poms. Retained Earnings on the Balance Sheet is the sum total of all the net income/loss of a company since its incorporation. Amazon has Retained Earnings of $1.95 Billion, while Tesla has NEGATIVE Retained Earnings of $-1.43 Billion.

http://www.bloomberg.com/research/stocks/financials/financials.asp?ticker=AMZN&dataset=balanceSheet&period=A&currency=native

http://www.bloomberg.com/research/stocks/financials/financials.asp?ticker=TSLA&dataset=balanceSheet&period=A&currency=native

jelloslug
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jelloslug

Sounds like someone is a bit mad about their TSLA short….

Ambulator
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Ambulator

It’s more that you (and some others here) don’t understand accounting.

I really want Tesla to succeed, and I see signs they are cutting costs. We’ll see if that makes enough difference in their future results.

sven
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sven

TSLA has been very, very good to me. 😀

And no, I never shorted the stock. I was just pointing out that the assertion that Amazon, like Tesla, does not make profits was wrong.

I did make a mistake above. Retained earnings is the sum total of all net income/loss, less all dividends paid, since incorporation.

Pushmi-Pullyu
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Pushmi-Pullyu

sven said:

“…the assertion that Amazon, like Tesla, does not make profits was wrong.”

The claim that Amazon.com doesn’t make a profit was commonly read online for several years when Amazon.com was a new and growing company. If it’s no longer true, if Amazon.com has grown to a size that it’s no longer investing all its profits into expanding the company, that doesn’t alter the fact that Tesla is now in the same position as Amazon.com was for several years… with exactly the same complaint being directed at it.

So let’s not pretend it’s not exactly the same thing, and exactly as wrong-headed to look at it this way.

sven
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sven

The phrasing used in the original comment was “They make no more profits than Amazon does. . .”

If he was referring to Amazon’s profit in its early years and not Amazon’s profit’s now, then lets not pretend that he used the wrong tense of the word “do.” “Does” is the present tense, while “did” is the past tense.

Nonetheless, point taken. 🙂

Lustuccc
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Lustuccc

I am very sorry, maybe I meant something else because this morning, re-reading my comment, I do not understand why I said that Tesla was making more profits than Amazon. I never believed that. Must be my pain killers…

But Pushmi-Pullyu put it much better than I did.
Tesla is not in trouble even if strict accounting does not balance over zero each year.
It’s like an adolescent growing fast. No matter how much you feed him, it’s never enough! 😉

JakeY
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JakeY

Looking at retained earnings does not address his point. He is saying that Tesla would be making quarterly profits if they didn’t invest so much in R&D and growing their company. The same can be said for Amazon (thus the analogy).

While it will take a while to cover for the cumulative losses of the company so far, that is a different point.

Pushmi-Pullyu
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Pushmi-Pullyu

Okay, it’s a different point, but it’s one I think is worth exploring. Is Tesla racking up cumulative debts in a way that Amazon.com did not? Is Tesla borrowing a lot more money than is safe, to expand? I’m not suggesting that’s a bad business strategy; they are betting big on the Gigafactory for good reasons. But if Tesla is putting itself into deep debt to maintain rapid growth, and if Amazon.com didn’t do that, then that means Amazon.com isn’t as good an analogy for Tesla as I thought.

Ambulator
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Ambulator

Tesla does not have too much debt. Some profit would make it much easier to borrow more, which they are likely to want to do.

Fabian
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Fabian

wow, now that’s a good referral program.

miggy
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miggy

Here is a referral for Tesla, open a store and service centre in New Zealand.

Realist
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Realist

I look forward to receiving my first “BUY TESLA NOW AND SAVE 1k $” Spam tomorrow

Stephen Pace
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Stephen Pace

@Realist: Happy to oblige. 🙂 I live in one of the states that Elon mentioned in the conference call: Texas. The shameful behavior of the Texas legislature, especially the Senate committee headed by Sen. Troy Fraser who didn’t even give the Tesla bill a hearing this year, motivates me to do what I can to help Tesla however I can. I’ve been an owner for more than 2.5 years, and I’ve given a number of test drives back when Tesla struggled to be able to do that. I’m happy to talk to prospective owners about my ownership experience, and if I can get someone a few dollars off for buying, so much the better. If you are considering buying the car and want to save $1000, feel free to use my link: http://ts.la/stephen8299

ModernMarvelFan
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ModernMarvelFan

That is similar to the Solar City referal program (except for the free Model X part).

Solar City gives out Visa cash card to those that referals and then discount on the buyer.

I am NOT sure if this is good sign for Tesla or a “desperate” sign, if Tesla is claiming that they are “production constrained”..

LusTuCCC
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LusTuCCC

Definitively a good sign just before the Model X rolls out, they have to make sure the constraint will continue For Model S.
For me it’s a sign that they anticipate a big sp’ash for Model X

ModernMarvelFan
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ModernMarvelFan

If Tesla is production constrained, it wouldn’t have to do anything to stimulate production since Model S and Model X share the production lines, it can just switch to selling more Model X if it is as strong as it expects..

Certainly, I wonder how many “new sales” this encourages…

LusTuCCC
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LusTuCCC

My gues is that they have separate lines. Can be more specific?

Stephen Pace
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Stephen Pace

@ModernMarvelFan: Tesla is just about to turn on a second production line. This line is significantly more capable than the original line which can produce around 1000 cars per week. While some are reading this as ‘Tesla demand is dropped so they need to do something to stimulate it’, I read it as ‘we’re about to have a lot of production capacity online, and that new production needs to be consumed’. Tesla can do that by opening more stores (which they are doing), but this is an experiment to see if they can stimulate demand so they can slow down the amount of stores they are opening. If it works, win win.

ModernMarvelFan
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ModernMarvelFan

Sure, that is great with the 2nd line coming online.

But this would mean that Tesla doesn’t believe the current incoming order rate would be able to fill up the new 2nd production line for both the Model X and orders of Model S that can’t filled by the first production line…

I guess it is bottle half full/half empty…

JakeY
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JakeY

You are talking as if demand miraculously happens without any marketing done and that any marketing done is “desperate”. While Tesla doesn’t do traditional advertising, as mentioned, they have stores, which costs on average $2000 per car sale. They are just trying a different way of marketing to see if it gets better results for the same amount of marketing money.

This is different from laying down a $2000 factory rebate AND still relying on the store to do the marketing (in which case the overall cost would be $4000).

See Through
Guest

I love these gospels from the almighty Elon! He never runs out of excuses to throw at the believers.
Then, why is it only for 3 months? Will Tesla open stores again after 3 months?

Josh
Guest

Model X production will be ramped by then. The new line is flexible for X or S.

TomArt
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TomArt

they have/had a fairly generous referral program for Roadster owners when the S first came out.

See Through
Guest

So how much did the Roadster referral help?

Mikael
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Mikael

Tesla is not and has not been production constrained for a long time.

This move seems rather be to try to keep the demand up to the levels it has been until now. Closing down the production line for a few weeks should also help to fill up the order stock.

I wonder how many sales the Model X is taking away, it will be interesting to follow after the initial back log for the Model X is gone.

Pushmi-Pullyu
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Pushmi-Pullyu

Mikael

“Tesla is not and has not been production constrained for a long time.”

Well, they’ve been able to sell every single car they make, with the possible exception of a limited number sent to China, which were ordered by speculators who refused delivery. Other than those relative few, Tesla has sold every single one including demo and loaner models.

Furthermore, the resale value of used Model S’s is substantially higher than normal for car.

I’d call those facts pretty solid evidence that demand for the Model S exceeds supply. Now, it’s certainly true that some of Tesla’s marketing strategy does include managing demand. But that doesn’t mean that demand doesn’t exceed supply; it just means that Tesla does have to put forth a bit of effort to ensure demand continues to exceed supply.

Efforts like the one detailed in this article.

Now, Mikael, if you have any evidence that Tesla’s production has ever exceeded demand, I’d be very interested to see it. That’s a Tesla bashers’ claim I’ve often seen on investor websites such as Seeking Alpha. But I have never, ever, seen that claim backed up by solid evidence or even a reasonable interpretation of the publicly available data.

See Through
Guest

Nonsense. Then please explain the excess production every quarter that never get sold.

But then, if you count giving away cars as sale, then you could be right.

Pushmi-Pullyu
Guest
Pushmi-Pullyu

See Through said:

“Then please explain the excess production every quarter that never get sold.”

You mean, the cars which have been ordered and produced, which (at any and every time inventory is taken) are en route to the customer, to be paid for on delivery? How do you twist that into “never get sold”?

Go back to peddling your Tesla basher conspiracy fact-twisting and conspiracy theory FUD on Seeking Alpha, troll.

See Through
Guest

Moe nonsense to support the first nonsense!

Big Solar
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Big Solar

See through, always able to see through facts into fantasy land.

Pushmi-Pullyu
Guest
Pushmi-Pullyu

“See Through” said:

“Moe nonsense…”

Not to mention Larry and Curly Joe.

I guess we know who the fourth Stooge is, don’t we? 😉

http://files.chesscomfiles.com/images_users/tiny_mce/Reb/three-stooges-triple-facepalm.jpg

Mint
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Mint

There is no excess production that never gets sold, troll.

There is a growing difference because sales are growing. Ever heard of the word inventory? Do you expect inventory for a company selling 21k cars per year to be the same as one selling 33k/yr or 55k/yr?

Anyway, please feel free to continue being the laughing stock of InsideEVs…

See Through
Guest

Hey Tesla troll,
Go back to your assembly line pronto! Is the Tesla factory closed that you are hanging around here?

Mint
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Mint

As usual, you avoid the meat of the argument like a coward…

Tech01x
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Tech01x

Examine the finished goods inventory in terms of production weeks, not absolute values. As production per week goes up, the amount of inventory in transit is bound to go up. Production has gone up dramatically over the course of the past two years.

Also, Tesla has switched to cheaper transportation (rail) which has also increased the delivery times. Therefore, more inventory is now in the delivery pipeline at the end of each quarter.

Again, no evidence of excess inventory outside of China, which was a fall 2014 story. Some people have mistaken CPO’s as excess new finished goods inventory, which is just sloppy research.

Pushmi-Pullyu
Guest
Pushmi-Pullyu

Tech01x said:

“As production per week goes up, the amount of inventory in transit is bound to go up.”

There you go, using logic. Trolls hate that.

LusTuCCC
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LusTuCCC

Well on the web site if you order now, delivery will be in september…

ModernMarvelFan
Guest
ModernMarvelFan

So, Tesla has a buy back program right?

If someone is buying 10 Tesla and then sells them back to Tesla in few months, do they drop enough value to cover the cost a new Model X?

Which way is cheaper?

Would that be allowed?

ModernMarvelFan
Guest
ModernMarvelFan

“Please note that we may withhold credits, discounts or other awards where we believe customers are acting in bad faith or otherwise acting contrary to the intent of this program”

I guess that would be determined to be “bad faith” by Tesla…

NVM…

sven
Guest
sven

Darn, there goes my plan to get ten of my family and friends to each purchase a new 1:18 scale diecast Tesla Model S from the official Tesla store 🙁

http://insideevs.com/118-scale-tesla-model-s/

ffbj
Guest
ffbj

Why? You just get 1:18 scale Model X.

TomArt
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TomArt

🙂

Anon
Guest
Anon

Worth it! A $249 dollar value…

sven
Guest
sven

Definitely worth it. But I wonder if they will be able to get the tiny Falcon Wing doors to align right on the 1:18 scale Model X. 😉

Pushmi-Pullyu
Guest
Pushmi-Pullyu

ROTFL!! 😀

ffbj
Guest
ffbj
Anon
Guest
Anon

I think you’ll be pleased…

Pushmi-Pullyu
Guest
Pushmi-Pullyu

ModernMarvelFan said:

“So, Tesla has a buy back program right?

“If someone is buying 10 Tesla and then sells them back to Tesla in few months, do they drop enough value to cover the cost a new Model X?

“Which way is cheaper?

“Would that be allowed?”

I certainly can’t speak for Tesla Motors, but looking at it strictly from an accountant’s viewpoint, I can’t imagine why they would object. If Tesla makes about 25% profit on every Model S, as they claim, and if Tesla also makes a profit on reselling used Model S’s, then that’s a win-win for both you and Tesla. Surely the profit margin on 10 Model S’s significantly exceeds the expense of producing a single Model X.

Now, looking at the situation more broadly, outside a narrow accountant’s cost/benefit analysis, I can easily see that Tesla might consider this to be “gaming the system”, and disallow that on the basis that it would be bad publicity to allow someone to simply buy the award.

sven
Guest
sven

“. . . and if Tesla also makes a profit on reselling used Model S’s. . .”

Has Tesla ever said or have some forum gurus calculated how much gross margin Tesla is making on its pre-owned car sales? I figure a bunch of people who traded in their Teslas for newer models have posted in the forums the dollar amount they received for their trade in and the selling price Tesla eventually listed for their old car on Tesla’s Certified Pre-owned webpage.

Pushmi-Pullyu
Guest
Pushmi-Pullyu

sven asked:

“Has Tesla ever said or have some forum gurus calculated how much gross margin Tesla is making on its pre-owned car sales?”

I haven’t tried to follow that, but if you’re really interested, here is some recent and apparently relevant discussion of the question:

http://www.teslamotorsclub.com/showthread.php/49579-Model-S-Depreciation-significantly-higher-than-expected

sven
Guest
sven

Thanks!

ModernMarvelFan
Guest
ModernMarvelFan

I think Tesla would consider it as “bad faith”… LOL

But getting 10x $1,000 plus a Model X is a petty good incentive (combined with 10 Model S for few months). =)

Ambulator
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Ambulator

“I certainly can’t speak for Tesla Motors, but looking at it strictly from an accountant’s viewpoint, I can’t imagine why they would object.”

It does say: “You must be a current Tesla owner to make referrals and cannot refer yourself.”

TomArt
Guest
TomArt

“nefarious” – love it! Somebody is having fun fitting uncommon, multi-syllable words into ordinary press releases…I’d do it…probably a very tedious and monotonous occupation, I would imagine…

TomArt
Guest
TomArt

There is a third way that Tesla “advertises”: clickbait-happy media outlets jumping onto every single press release…

Pushmi-Pullyu
Guest
Pushmi-Pullyu

Darn it, you figured out that InsideEVs implants irresistible hypnotic suggestions into its website that force you to click on a story link whether you want to or not.

Now they have to send the men in the black vans to kidnap and, um, reeducate you.

electric-car-insider.com
Guest

I have requested info on how this gets around the anti-birddogging regulations in California and most other states. (Yes the NADA does not want you to get paid for referring a friend to an auto seller).

Haven’t heard back yet. Hope it’s not a road block, I’d be winning that Model X 😉

Pushmi-Pullyu
Guest
Pushmi-Pullyu

Well, I think it’s time for me to stop saying that Tesla Motors doesn’t pay for advertising. This may not technically be mass advertising, but this certainly appears to be moving beyond depending on nothing but free media coverage on the Internet and social media, plus Tesla sponsored media events.

ffbj
Guest
ffbj

I think so too. Also it occurs when Tesla is coming out with another model, so it makes sense now. Urgency is also injected into the mix.
It’s like using money that could be wasted on advertising to benefit their most faithful customers, and supporter.

Derrick Vargas
Guest
Derrick Vargas

Can some Model S owners send me a referral? I’d love to have a free model x

peet365
Guest
peet365

Tesla accordnig to Elon will have capacity by end of the year 2000 cars/week. To put it in context Porsche, which is probably by price and production level best comparision from car industry sells around 160k cars/year. If Tesla can manage to sell all their prodcution next year it will be unprecedented and it will take lots of creative marketing, becuase Tesla is and wont be nowhere near to Porsche sales/service points as well as advertising budget. Tesla is changing from small niche producer to big luxury car producer and it will take a lot creative marketing with such a low budget to be able to sell so many luxury cars. Obviously if today with 1000cars/week delivery time is 2 months they have lots of work ahead of them to fill up 2000cars/week capacity.

Pushmi-Pullyu
Guest
Pushmi-Pullyu

I don’t expect Tesla to avoid paid mass advertising forever. In fact, I would see it doing so as a sign the company is maturing.

A lot of people have claimed that as sales grow, Tesla will be forced to move to a traditional dealership model, even if they don’t want to. I hope they’re wrong, but Tesla should do what’s best for its business.

Steven
Guest
Steven

Like being an employee of the company, and using your entire paycheck (over the span of several years) to buy one.

But without the retail hours and health benefits.

kdawg
Guest

So if I refer someone and they buy a Tesla, I get $1000. But if they refer someone, do I get $250? And if that person refers someone, do I get $100? And so on…

ffbj
Guest
ffbj

Michael: ” Its not a pyramid.”

Josh
Guest

And unless you recently snagged a Model S and shamefully didn’t post review, you couldn’t even refer someone.

Owner program only (sadly).

Benz
Guest
Benz

This is a good idea, it’s much better than advertising.

CherylG's_DirtyLittleSecret
Guest
CherylG's_DirtyLittleSecret

Tesla should double down on this for buyers and referrers from a state that prohibits them from direct sales.

Andrew
Guest

Byorn Nyland has good chances to get a Model X for free 🙂
If he hurries up and makes a video with his link…

Brent
Guest
Brent

feel free to use this link to get $1000 off your next tesla!

http://ts.la/catherine7305

KumarP
Guest
KumarP

It’s a bummer that you have to be a current customer to win anything. I actually know enough environment-minded well-heeled folks that I would have a not-100%-insignificant chance to refer 10 people for a chance at the free X.

Phr3d
Guest
Phr3d

taking odds on the winner of the X being an impressive match to perceived customer-base with a wonderful back-story — film@11, hehe.
(i.e., the sewer-service owner with the levis cleavage need not apply, apologies in advance for any insult taken from my imaginary reference to attempt to make my point).