Tesla Incentivises Year-End Deliveries with 3months of free FSD

(Benzinga)
Tesla Inc (NASDAQ: TSLA) will provide three months of full self-driving (FSD) software to owners of vehicles delivered in the final three days of 2020.

The announcement was made Tuesday by the electric vehicle maker’s CEO Elon Musk on Twitter.

Over the holiday weekend, Musk had reportedly written to Tesla employees, encouraging them to “go all out to make it happen,” in an effort to reach the milestone of 500,000 deliveries this year.

The Palo Alto-based EV maker is already offering one year of free supercharging in order to draw customers to its vehicles.

Tesla owns its distribution system in its entirety and cannot recognize revenue until vehicles are delivered even though it spends money upfront to manufacture them, noted Electrek.

The result is the automaker has to push hard at the end of each quarter to reduce inventory and increase deliveries.

Electrek noted that the FSD incentive is unprecedented, but called the free Supercharging offer as “usual.”

The automaker needs to make 181,000 deliveries in the current quarter in order to beat its previous record.

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