{"id":34418,"date":"2022-10-24T06:07:07","date_gmt":"2022-10-24T10:07:07","guid":{"rendered":"https:\/\/autosector.com\/?p=34418"},"modified":"2022-10-24T06:07:07","modified_gmt":"2022-10-24T10:07:07","slug":"tesla-pulls-demand-levers-china-launches-referral-program-cuts-prices","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=34418","title":{"rendered":"Tesla (TSLA) pulls demand levers in China, launches referral program and cuts prices"},"content":{"rendered":"

Tesla<\/a> has decided to pull on demand levers in China with the launch of a new referral program in the market and cutting prices on Model 3 and Model Y. The TSLA Stock price<\/a> is down in pre-market.<\/p>\n

Over the last few months, there have been increased concerns about softening of demand for Tesla vehicles.<\/p>\n

It was enough for CEO Elon Musk to address it during the conference call following the release of Tesla\u2019s Q3 2022 financial results<\/a>.<\/p>\n

The CEO reiterated that \u201cTesla doesn\u2019t have a demand issue\u201d:<\/p>\n

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I\u00a0can\u2019t emphasize enough, we have excellent demand for Q4, and we expect to sell every car that we make for as far in the future as we can see.<\/p>\n<\/blockquote>\n

In terms of demand softening for Tesla, we reported earlier this month that Tesla\u2019s demand shouldn\u2019t be seen as a concern until Tesla starts pulling on some \u201cdemand levers\u201d<\/a> \u2013 meaning that the automaker takes some action to actually create some demand.<\/p>\n

To be sure Tesla has a full quiver of such levers. One example is that Tesla recently announced new colors out of its German factory<\/a>. Those cars are now sold out for months longer than previous colors, even with a \u20ac3200 premium. <\/p>\n

Tesla is pulling demand levers in China<\/h2>\n

For the better part of the last two years, Tesla has been coasting on the demand front and didn\u2019t do anything to encourage it.<\/p>\n

In fact, Tesla did the opposite by continuously increasing prices<\/a> throughout its lineup and even stopped taking orders on some models<\/a> because its backlog was getting too big.<\/p>\n

Now we are seeing the tide changing for the first time in two years.<\/p>\n

One of the biggest demand levers you can pull is reducing prices, and that\u2019s exactly what the automaker is doing in China.<\/p>\n

Today, Tesla reduced the starting price of its Model 3 built in China to 265,900 yuan (~$36,800) from 279,900 yuan. The Model Y SUV in China also saw a price reduction to 288,900 yuan from 316,900 yuan.<\/p>\n

Furthermore, Tesla has pulled another demand lever in launching a new referral program in China.<\/p>\n

We have been reporting for a while that Tesla has been working on a new referral program for vehicle owners<\/a> after shutting it down completely last year. Last week, we reported on how Tesla should be launching it soon<\/a> based on some new code in the Tesla mobile app.<\/p>\n

Now Tesla has launched a version of the new referral program in China.<\/p>\n

The automaker is calling it the \u2018\u201dTreasure Chest<\/a>\u201d Points Rewards\u2019 program. Like the previous referral program, Tesla owners can get rewards if new buyers order through their referral links. The new buyers also get rewards through buying through these new referral links shared through the Tesla app.<\/p>\n

The only difference is that instead of directly receiving awards, like free Supercharging miles, both the Tesla owner and the person who made the referral receive \u201cpoints,\u201d which can later be exchanged for awards like in-vehicle software upgrades, Tesla accessories, or free Supercharging miles.<\/p>\n

The points also enter Tesla owners into quarterly and annual raffles.<\/p>\n

Here are the prizes for the first quarter 2023 raffle:<\/p>\n