Musk responds to suggestions discounts are being given to hit sales targets.

Tesla CEO Elon Musk has sought to head off concerns the electric automaker is offering big discounts on its cars by publishing an email urging employees to stick to the company’s long-held no discount policy.

Automotive News reports the email was published on Twitter in response to a Reddit thread in which a Tesla customer claimed to have been offered a discount on a new car.

After posting deliveries of 29,202 Model S and Model X cars in the first six months of 2016, Tesla set itself an aggressive target of 50,000 deliveries for the second half of the year.

Last week, an analyst at Pacific Crest Securities, Brad Erickson, told clients in a research note: “We detected aggressive Model S discounting at U.S. sales centers intended to maximize Q3 deliveries. We found Tesla has been employing a deeper discounting formula to drive sales of inventory models, with all offers expiring this Friday [September 30], the last day of the quarter.”

Musk initially responded to the Reddit post on Twitter, saying he would investigate the situation. He later tweeted that action had been taken, then went on to publish the email.

The email clarified that discounting of floor models, cars used for test drives, or cars damaged in transit from the factory is fine, but added that there can never “be a discount on a new car coming out of the factory in pristine condition, when there is no underlying rationale.”

The email went on: “I’m sorry for the draconian language, as I am super grateful for your hard work, but there is nothing that matters more than our integrity as a company. Customers need to know with absolute certainty that they can always trust Tesla to do the right thing.”

Musk then congratulated the employees on the company’s performance in the July to September period, noting it is “likely to be the best ever in Tesla history.”

Source: Automotive News

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