Tesla ends car referral rewards, now offers FSD credits for referrals

Tesla has overhauled its US referral program, dropping vehicle purchase rewards entirely and shifting to Full Self-Driving (Supervised) credits. Under the new terms, a referred owner receives one free month of FSD, while the referrer gets a free month or a $99 Tesla Credit if the new owner starts paying for the software. The updated Refer and Earn terms no longer list any vehicle as a qualifying purchase for buyer or referrer rewards, meaning buying a Tesla with a friend’s code now yields nothing for either party. This move signals Tesla’s strategic pivot toward promoting its high-margin software and subscription services over hardware sales, likely aiming to boost FSD adoption and recurring revenue. It also reflects the company’s confidence in FSD as a key differentiator and revenue driver. For Tesla owners and prospective buyers, the change removes a popular incentive for word-of-mouth sales, potentially affecting customer acquisition costs and owner engagement. The new program underscores Tesla’s evolving business model, where software subscriptions may become as important as vehicle deliveries. As Tesla continues to refine its referral strategy, owners and industry watchers will be watching whether FSD credits can sustain the same level of enthusiasm and referral volume that car discounts once did.