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Tesla to offer $1K referral discount on Model S

The moves comes as Tesla Motors aims to make the electric car more affordable and boost its performance.

Tesla Motors (TSLA) will offer a $1,000 referral incentive on its Model S electric car, CEO Elon Musk said Wednesday.

Under the program, which Musk called an experiment, new buyers through Oct. 31 will get a $1,000 discount on the transaction if referred by a current owner. Those customers receive a credit for the same amount to go toward a new vehicle purchase, service or accessories.

Read More Tesla CEO Musk unveils Model S upgrades

The first current customer to make 10 referrals will also receive a free Model X, Tesla's next vehicle to be released.