Tesla Alters First Sales Incentive After Virginia Cracks Down

Virginia regulators have taken issue with Tesla Motors Inc.’s new Model S referral program, prompting the maker of luxury electric cars to change the program in that state.

Tesla, which eschews traditional advertising and dealer networks, recently rolled out its first incentive program. Under the offer, designed to boost the company’s sales via word-of-mouth marketing, anyone who orders a new Model S before Oct. 31 using the referral link of a current owner will get $1,000 off the purchase price. In return, the current owner will get a $1,000 discount that can be applied to a new car, service center visit or accessories.