Economy

Tesla is offering one year of free super shipping to spur deliveries in a record quarter bid

Electrek learned that Tesla is now offering one year of free supercharge to spur deliveries by year end as it tries to hit another record quarter.

Yesterday, we reported Elon Musk writing in a staff email Tesla is seeing strong demand but the automaker needs to rapidly increase production In order to fulfill expectations.

As mentioned previously, Tesla is currently in the middle of the year-end delivery batch as it aims to deliver a record number of vehicles this quarter to achieve 500,000 deliveries in 2020.

The automaker needs to deliver more than 181,000 cars this quarter in order to achieve this goal. That’s over 40,000 vehicles during its most recent quarterly delivery record.

We now learn that despite Tesla apparently seeing strong demand, the automaker has added a new incentive for buyers.

Electrek learned that today Tesla authorized sales personnel in North America to grant one year of free unlimited supercharging to Model 3 and Model Y vehicles that have not been delivered.

The carmaker wrote in a meme that Electrek saw:

“From December 12 to December 31, all undelivered Model 3 and Model Y vehicles (except for the standard Model 3 range) that are delivered by December 31 will receive a free supercharge for one year.”

Tesla used to offer free Supercharging as a referral prize, and periodically used the incentive to boost deliveries at the end of the quarter.

In the last quarter, we reported that Tesla briefly offered an additional 1,000 free miles for supercharging To deliver cars by the end of the year.

Take an electric

At first glance, some might think Tesla is sending mixed messages.

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Elon says demand is strong, but now Tesla is adding an incentive to help introduce more vehicles.

The key word here is “deliver”. Tesla is already seeing strong demand, but it is trying to provide incentives for buyers to have their cars received by the end of the year.

Unlike other automakers, Tesla owns the entire distribution system and has a huge impact on the automaker’s financial statements since it cannot recognize revenue until the cars are delivered and the money is spent up front to make those vehicles.

This results in Tesla aggressively pushing each quarter to reduce its inventory and deliver as many vehicles as possible at the end of the quarter.

So, even if Tesla has the orders in place, it is sometimes difficult to arrange deliveries with buyers due to availability, timing of replacement, or other reasons.

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Thelma Binder

"Explorer. Devoted travel specialist. Web expert. Organizer. Social media geek. Coffee enthusiast. Extreme troublemaker. Food trailblazer. Total bacon buff."

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