North Carolina start-up CEO: This is why we're giving Teslas to our employees

Get a Tesla Model 3 for free if you work here

Practichem, a North Carolina-based start-up that makes scientific instruments, is giving its employees Tesla Model 3s for one reason, its CEO said Friday.

"The Tesla car is really an inspiring car," Nick DeMarco told CNBC's "Power Lunch." "It's really an inspiring story, and I want our employees to come in every day and touch that steering wheel when they get out of their car and come in and realize they can do that same sort of inspiring things in our industry."

When asked why he didn't just pay his employees more, DeMarco said: "Money isn't as inspirational for us. Everybody has to drive a car, and this is a great benefit for people."

On Thursday, The News & Observer first reported Practichem was leasing this sweet perk for all employees.

Tesla Motors unveils the new lower-priced Model 3 sedan at the Tesla Motors design studio in Hawthorne, Calif., Thursday, March 31, 2016.
UPDATE: Tesla CEO Musk says Model 3 orders now at 232K

Prachticem "has done more with our few people ... than our competitors who have been entrenched forever," DeMarco told the newspaper.

"It doesn't hurt to get publicity when we're trying to hire more people," he added.

Practichem is looking to fill 10 positions, the newspaper said in its report.

The Model 3 is slated to hit the streets next year and is expected to have a starting price of $35,000.

Read The News & Observer's full report here.