Tesla will close its customer referral program on February 1, because it costs the company too much money, says CEO Elon Musk in a tweet on Thursday.
The initiative allows customers to give their friends referral codes to get six months of free charge when purchasing a Model S, Model X or Model 3, according to Tesla's website. Participating drivers then get their own allocation based on how many people they refer to.
There won't be another referral system after this ends, says Musk, because "it adds too much to the cars, especially model 3." Drivers must refer to friends before February 1
Tesla has been looking to cut costs this year. In June, the electric car manufacturer announced that it cut 9 percent of its employees across the country as part of an organizational restructuring aimed at reducing costs and increasing profits.
But last quarter, Tesla released its first surplus for more than five years and recorded an adjusted earnings per share. $ 2.90 share on a $ 311.5 million net income. Musk had previously promised to achieve sustainable profitability by the end of 2018.
In early January, Tesla & # 39; s fourth quarter deliveries, which dropped slightly below expectations, were disappointed investors.
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And instead of losing a federal tax credit of $ 7,500, the company beat the price of all its electric car models with $ 2,000.