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Tesla Referral Program Prompts Formal Complaint Over 'Rogue Car Salespeople'

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Tesla's referral incentives are under the microscope, following immense criticism of its direct sales model, according to a complaint filed by the California New Car Dealers Association to the California DMV.

The complaint alleges that Tesla is using its customers as unlicensed pseudo-salespeople, according to Teslarati. California law prohibits car sales without a sales license in the state.

Yet if you love your car, you're bound to tell people about how great it is. Sometimes friends like it so much that they too want to buy one.

Previously, referral incentives have come in the form of a Model S for kids, larger factory wheels, a power wall or even a free next-generation Tesla roadster.

A referral isn't just a one-sided game, either. The prospective new owner can also get $1,000 off the purchase of their Model S or Model X, and a lifetime of free supercharging at any of Tesla's charging stations. The Model 3 is ineligible for any current referral bonuses that Tesla offers its customers, however, possibly due to slim profit margins on the lower-priced configurations.

Tesla has also had two separate formal complaints filed against it, both involving the manufacturer's business model. Only one of those complaints were acknowledge by the DMV, which issued a warning to the automaker for offering strictly monetary incentives in its "secret" referral program.


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