States' concerns about incentive program trigger change

[Bifff67]

Tesla email to us today:

Various states have laws that were enacted to prevent rogue car salespeople. You can imagine an era when legislators were concerned about stereotypical “car salesmen” trying to sell cars without a license. At Tesla, we sell our cars differently. We don’t use traditional car dealers let alone rogue salespeople. However, our Referral Program has struck a chord with Virginia regulators, who have claimed that aspects of it do not comply with this type of law.

Our Referral Program was never designed to make you a salesperson. Nevertheless, due to the position taken by Virginia regulators, we are making one change to our Referral Program for our customers in Virginia. Now, when someone buys a new Model S through your referral link, the $1,000 credit that you were to receive in your Tesla account will instead go to the person receiving the referral. That person will now get $2,000 (instead of $1,000) off the purchase price. The program otherwise remains as described in Elon’s email to you.

 

[AnOutsider]

nada here in PA.

 

[bonnie]

Request - could the thread title be updated to reflect WHAT issue?

 

[aesculus]

Bonnie: You live on the left side of the Sierra's. Its another world on the other side. Be careful out there.:scared:

 

[bonnie]

Bonnie: You live on the left side of the Sierra's. Its another world on the other side. Be careful out there.:scared:

So do you!

 

[AMPUP]

Request - could the thread title be updated to reflect WHAT issue?

I guess the issue is Virginians don't get 1K in accessories, but buyers get 2K in savings. Virginia has to be the worst car friendly state.... Property tax, EV tax and this......shocking really. However, there are always pro's and cons for every state...

 

[Bifff67]

Bonnie - hi - no - you have to work.

Amp - I just thought it thru and VA people and referral links are going to be the hot commodity for $2k. We are in fact going to be more the sales people!. I love the irony.

 

[mibaro2]

I wonder how Costco can get away with promoting $1000 off a new ford vehicle. Doesn't that make Costco a rogue sales person?
Can anyone confirm if Costco has that same promotion in Virginia?
(not sure if Costco does this in the U.S., but they do it here in Canada).

 

[cgiGuy]

This is how Tesla should set it up for every referral in every state. I don't need accessories.. but I'd love to see more people buy this car. Also, it takes the "there's something in it for me" part out of the equation.

 

[jbcarioca]

Bonnie - hi - no - you have to work.

Amp - I just thought it thru and VA people and referral links are going to be the hot commodity for $2k. We are in fact going to be more the sales people!. I love the irony.

Unintended consequences are great when we like the results! Weird, because i have offered my Tesla-aspiring friends my $1000 as well as theirs. Were i to live in VA that would have been automatic and i could be a real car salesman! Good luck with your new career, Biff.

 

[danahull]

Hi there - I cover Tesla Motors for Bloomberg News and have not heard of this issue in any other state. Would love to talk to you. Can you give me a ring at 415-617-7231? Much thanks, Dana Hull [email protected]

 

[Bifff67]

Talking to the people in the Tesla store, they say the test for the license is easy. So if I (we?) are in fact licensed, does that work? Can you imagine the add'l Tesla headache? Never mind, I'm good just getting 2k to new buyers. ( I have 2 refs so far!)

 

[CUBldr97]

referal program change in VA?

Quick-thinking Tesla Motors Changes Tesla Referral Program to Comply With Virginia Auto Dealer Laws | Transport Evolved

Basically you wont get the $1000 for a referral but the friend will get $2k discount instead.

 

[liuping]

Quick-thinking Tesla Motors Changes Tesla Referral Program to Comply With Virginia Auto Dealer Laws | Transport Evolved

Basically you wont get the $1000 for a referral but the friend will get $2k discount instead.

I wish they had this as an option in all states. A lot of people (myself included) feel uncomfortable getting money for referring friends and coworkers.

 

[TexasEV]

I wish they had this as an option in all states. A lot of people (myself included) feel uncomfortable getting money for referring friends and coworkers.

You can give it to the person who you referred to buy the Model S.

 

[adiggs]

You can give it to the person who you referred to buy the Model S.

Unless there's something I don't know, the mechanics of doing so are less than stellar. You could write your friend a check for $1000, and get your money back later when you don't spend $1000 with Tesla that you would otherwise be spending. As the referrer, you are giving your friend cash in exchange for a limited duration Tesla gift card in the same amount. You're trading down on the quality of your money, so you're getting punished (a little bit - not a lot granted) for referring your friend and giving him your referral bonus.

 

[TexasEV]

Unless there's something I don't know, the mechanics of doing so are less than stellar. You could write your friend a check for $1000, and get your money back later when you don't spend $1000 with Tesla that you would otherwise be spending. As the referrer, you are giving your friend cash in exchange for a limited duration Tesla gift card in the same amount. You're trading down on the quality of your money, so you're getting punished (a little bit - not a lot granted) for referring your friend and giving him your referral bonus.

Maybe you could just give him your gift card then?

 

[AmpedRealtor]

I agree with those who say give all $2,000 to the buyer. As an owner, I don't want to profit off of my love for the car and wanting to show it off to everyone I encounter. It doesn't feel right. I also think it will lend a lot more credibility to the program if Tesla makes this change. But give Bjorn his free Model X

 

[liuping]

Maybe you could just give him your gift card then?

Same problem. If I give them a $1000 gift card, I'm out $1000, which I may not get from Tesla in the form of service for a few years.

It would be nice if refers had the choice of a) keeping the $1000 in Tesla parts/service, b) transferring the $1000 in service/parts to the buyer, or c) giving the buyer an extra $1000 of the purchase price.