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Should Tesla have ended its Referral Program?

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Tesla’s long-running and generous referral program came to an end on February 2, with CEO Elon Musk citing too much cost to the company’s vehicles, especially the Model 3. The system that rewarded so many with so much was finally concluded, but should it have been?

Teslanomics host and Tesla owner-enthusiast Ben Sullins noted in a recent video that the electric carmaker maybe – just maybe – made the wrong decision when it retired its referral program. Tesla’s referral program actually compares favorably to initiatives of other carmakers like General Motors when it comes to return of investment, notes Ben in his analysis. Case in point: GM spent around $3.24 billion in advertising in 2017 versus its auto revenue of $146 billion during the year. This translates to a 45x ROI, meaning that for every dollar the automaker spent on advertising, GM got $45 in revenue.

Tesla, on the other hand, has not released the actual costs of the referral program, but considering the price of the approximately 160 free next-gen Roadsters that Tesla will give out, the Teslanomics host estimates the program to have cost Tesla around $32 million, at least considering the costs associated with the program’s most prolific prize. Compared with the $17.63 billion in auto revenue that Tesla reported for 2018 in its recent Update Letter, the company’s $32 million cost for the free Roadsters actually gives a healthy 550x ROI. This means that for every dollar Tesla spent on the referral program’s largest prize, the company received $550 back in return.

Ben also noted that among automakers in the United States, Tesla is among the ones with the least advertising spending per vehicle sold, at just around $106. This is lower than Porsche’s $161 advertising spending per car, and far below Volkswagen’s $1,211 spending per vehicle sold.

Ultimately, the Tesla owner-enthusiast concluded that it would probably be best for the electric car maker to bring back its referral program, though in a more balanced form. This would actually be a pretty good idea, considering that the story of Tesla’s referral system is a classic tale of a good idea that eventually became unsustainable in the face of growth. A great way to illustrate this would probably be a poll that Teslarati ran after Elon Musk’s announcement last month. Based on the results of our poll, the majority of voters were actually on board with the referral program’s retirement. 

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It should be noted that Ben and other social media influencers have helped spearhead tremendous word-of-mouth sales for Tesla, while also leveraging their following as a way to gain the necessary referrals to win the upcoming supercar. Some twice. Apart from this, the Teslanomics host’s computations for the rewards system only includes the price of the Roadster and doesn’t take into account other factors connected to the program, such as logistics, developments costs, and other time value costs involved in the production and fulfillment of prizes.

It would be easy to point fingers at who or what is really responsible for the end of Tesla’s generous referral program. It could be influencers who utilized their platforms of choice to refer dozens or even hundreds of new customers. It could also be the Model 3 owners, whose lower-margin vehicles practically flooded the system, rendering it unsustainable. Overall, the fall of the referral program is simply due to Tesla’s inability to balance its rewards system. Perhaps capping the prizes at a point (stopping at one Roadster would have been a great idea, or giving lower-tier prizes for lower-margin vehicles) would have solved the issue. Nevertheless, it would be up to Tesla now if it decides to roll out a similar, more balanced program in the near future.

Watch Ben Sullins’ take on the retirement of Tesla’s referral program in the video below.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Semi futuristic sci-fi acceleration sound will never get old

Videos that capture the Semi moving at speed are most notable due to their sheer cool factor.

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Credit: Tesla Owners Silicon Valley/X

The Tesla Semi is not yet in mass production, but the company has accumulated over 7.9 million miles across its test fleet. With Tesla using the Semi for its operations, it is no surprise that sightings of the Class 8 all-electric truck have been abounding. 

These sightings from Tesla enthusiasts vary, but those that capture the the Class 8 all-electric truck moving at speed are most notable, possibly due to their sheer cool factor.

Tesla Semi’s Roar

There is something that just stands out with the Semi, particularly on the road. While the Semi does not have the Cybertruck’s brutalist, angular design, it is still very striking because it’s such a massive machine that moves far too quietly for its size. This is, of course, one of the reasons why the vehicle also becomes extra noteworthy when it fires up its electric motors and accelerates.

Take this video from Tesla Owners Silicon Valley, for example, which shows the all-electric hauler accelerating while pulling what appears to be a full load. In these situations, the Tesla Semi actually becomes audible, but unlike traditional diesel-powered truck, the Class 8 all-electric truck “roars” with its own, unique futuristic, sci-fi sound. In such situations, one could feel the Semi’s raw power, which comes from its three independent motors on its rear axles.

Tesla Semi Ramp

Tesla has been promoting the Semi quite a bit as of late, and recent reports have suggested that the company is putting in a lot of effort to prepare the vehicle for its production in Nevada. Tesla’s Careers website has gone live with over 80 Semi-related job openings recently as well, and a recent report has suggested that Tesla has ramped the Semi’s factory workers in Nevada to over 1,000 employees.

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The company has even shared an update video of the Semi factory’s progress near Giga Nevada, as well as the design of the vehicle’s new logo. The Semi’s updated logo is quite interesting as it features elements from the Tesla Model 3’s first logo, which was unveiled way back in 2016.

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Elon Musk jokes he will join Mr Beast’s “100 Men vs 1 Gorilla” challenge

It’s a good sign, if any, that the overworked Musk is becoming a bit more lighthearted again.

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Credit: Elon Musk/X

Following the first quarter Tesla earnings call, CEO Elon Musk seems to have become a bit more relaxed—relaxed enough to joke about fighting a gorilla with 99 other people, at least.

It’s a good sign, if any, that the overworked Musk is becoming a bit more lighthearted again and not too busy picking fights with politicians on social media.

The Viral 100 Men vs 1 Gorilla Challenge

Over the weekend, a post on social media platform X went viral. The post itself was quite simple, with user @DreamChasnMike stating that he thinks 100 men could beat one gorilla. “Everybody just gotta be dedicated to the sh*t,” the X user joked. The post exploded on the platform, garnering 284 million impressions as of writing.

The silly question also triggered a massive debate about whether 100 men would really stand a chance against a literal gorilla. Some users even lamented that the premise was a sign of male hubris. Nevertheless, the question proved to be a fun topic on X, with some more dedicated users even posting simulated videos of what the “100 Men vs 1 Gorilla Challenge” could look like. 

Mr. Beast and Elon Musk Join In

The premise is quite similar to other viral videos from noted YouTube creator Mr. Beast, so it was no surprise that edited images of Mr. Beast YouTube thumbnails with “100 Men vs a Gorilla” also started spreading on the social media platform. Mr. Beast, who tends to be game to such silly ideas, actually reposted the edited image, joking “Need 100 men to test this, any volunteers?”

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In true Elon Musk fashion, the Tesla and SpaceX CEO noted that he would join the challenge. “Sure, what’s the worst that could happen” Musk wrote in his post on X. Musk’s reply triggered quite a few laughs on X, with some stating that the world probably still needs the CEO.

While silly, Musk’s comment and his recent, more frequent posts about his companies’ products like Starlink and Grok have been received well by his supporters. Over the past months, after all, Musk has been very political and quite confrontational on social media. With Musk soon taking a step back from the Department of Government Efficiency’s (DOGE) daily operations, however, it seems like X will soon get a more tempered and lighthearted Elon Musk once more.

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Possible first glimpse of Tesla “Model 2” affordable car in Fremont Factory

The models that Tesla will release in the coming months will resemble the company’s current lineup.

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Image Credit: @metgodinwilderness7130/YouTube

During the Q1 earnings call, Tesla VP of Vehicle Engineering Lars Moravy set expectations on the design of the affordable models that the company is expected to launch this 2025. As per the Tesla executive, the models that Tesla will release in the coming months will resemble the company’s current lineup.

Drone footage from the Fremont Factory earlier this month might have provided the EV community its first potential glimpse at Tesla’s affordable cars–fondly dubbed by EV fans and analysts as the “Model 2” or even “Model Q”–or at least their components and overall shape.

The Sighting

Tesla watcher and drone operator Met God in Wilderness, who has been posting aerial videos of the Fremont Factory for years now, recently shared some footage from his drone flyovers this month. While the Fremont Factory was abuzz with activity as usual, a couple of rather strange vehicles were quickly spotted by EV watchers on social media.

During the drone operator’s flyover on the 17th, for example, an unfinished vehicle could be seen parked next to what appeared to be fully-built Model S and Model Y units. What was especially interesting was the vehicle’s roof, which seemed to be slightly narrower than the Model Ys around it. Based on the video, at least, the vehicle seemed to be shaped like a crossover as well.

Footage from the 24th of April also proved quite interesting, with the drone operator capturing footage of another cryptic vehicle. Unlike the mysterious, unfinished, crossover-esque car spotted on the 17th, this particular unit seemed to have a more sloping rear, at least based on the shape of its covering.

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What Lars Moravy Said

In Tesla’s Q1 2025 Update Letter, Tesla noted that “plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.” Tesla also noted that the new vehicles will utilize aspects of its next generation and its current platforms. They will also be produced on the same manufacturing lines as its present vehicle lineup, likely the Model Y and Model 3. 

During the earnings call itself, Moravy specifically stated that the new models that would come out in the next months would resemble the company’s current vehicles. They will, however, be affordable. “Models that come out in next months will be built on our lines and will resemble, in form and shape, the cars we currently make. And the key is that they’ll be affordable, and you’ll be able to buy one,” Moravy stated.

Watch the drone operator’s footage from April 17 below.

The drone operator’s footage from April 24 can be viewed below.

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