"It’s adding too much cost to the cars, especially Model 3."

Bottom Line

Tesla has found a new way to cut costs.

On Thursday, CEO Elon Musk announced on Twitter that the company's customer referral program will end on Feb. 1. In a follow-up tweet, he explained that the program was too expensive — another sign that Tesla's eyes are fixed firmly on the bottom line.

Refer a Friend

The Tesla referral program has changed regularly since its inception in 2015.

Currently, the rewards range from the launch of a photo of their choosing into space — whether that'll be done by the Musk-led SpaceX is unclear — to an invitation to a Tesla unveiling event, depending on how many new buyers the owner refers.

New buyers of a Model S, Model X, or Model 3 receive six months of free Supercharging if they use a friend's referral code. If they order the car without test driving it, they receive an additional three months.

Dollar Signs

Tesla ended 2018 on a financial high note, boasting record profits. And in just the first few weeks of 2019, it's dropped the cheapest versions of the Model X and Model S from its lineup, slashed the price of every model by $2,000 to encourage sales, and now cut the customer referral program in the name of cost savings — all moves seemingly designed to ensure the profitability of 2018 wasn't a fluke.

Now it's just a matter of waiting for the next quarterly report to find out if those efforts pay off.

READ MORE: Tesla Will End Referral Program to Help Model 3 Cost, Says Elon Musk [Electrek]

More on Tesla: Tesla’s Stock Plummets After It Cuts Price of All Models

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