Tesla Motors Inc (NASDAQ:TSLA) announced that it will offer an incentive of $1,000 to new car buyers who are referred by the owners of its Model S. The owners who bring in the referral are also entitled to receive an incentive of $1,000 in their Tesla account which they can use to purchase a new vehicle or accessories, or for accessing certain services.

This additional $2,000, being offered as incentive, is equal to the cost incurred by Tesla to sell a car through a company-owned store. The electric automaker believes that by offering the incentive, it is merely passing the costs as benefits to its customers. If this plan proves successful, it will drive sales for the company.

Tesla announced that orders for the new vehicle need to be placed by Oct 31 to avail this offer. The company considers this incentive plan as a guerrilla tactic which will help it counter the auto dealer franchise laws that restrict it from selling its luxury electric vehicles directly to customers.

In addition to the incentive, Tesla announced that the first owner who persuades 10 friends to buy the Model S in North America, Europe and the Asia-Pacific regions will receive a Model X SUV free of cost. Also, the next person to provide 10 successful referrals will be able to purchase the special version of the Model X called the Founders Series, which will not be accessible to the general public. The automaker further assured that customers providing five referrals will receive an invitation to visit its Gigafactory in Nevada along with a guest.

Tesla is witnessing growing sales due to the strong performance and impressive design of its products. The company delivered 10,045 vehicles in the first quarter of 2015, representing an impressive 55% improvement from the first quarter of 2014.

Tesla delivered 11,507 vehicles in the second quarter of 2015, representing an improvement of 52% from the year-ago quarter. The company expects to deliver about 55,000 Model S and Model X vehicles globally in 2015, up 70% from the 2014 level. Tesla anticipates annual sales of 500,000 units by 2020. Thereafter, the company hopes to double its production every year for a few years to attain annual sales of several million vehicles by 2025.

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