Tesla to offer $1K referral discount on Model S

Tesla Motors 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 MoreTesla 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.

The moves come as Tesla aims to make the car more affordable and boost its performance. The automaker earlier this month unveiled separate Model S developments, including a battery pack upgrade that provides additional range and a single motor version of the 70kWh Model S that costs $5,000 less than the dual motor model.

A Model S electric vehicle (EV) is displayed inside the show room at the Tesla Motors Inc. Gallery and Service Center in Paramus, New Jersey.

Ron Antonelli | Bloomberg | Getty Images

Tesla also said it would add a "ludicrous" mode option for the car, which decreases the amount of time it takes to go from zero to 60 mph.

Tesla delivered 11,507 Model S cars in the second quarter, a 52 percent increase from the previous year, the company said earlier this month.

Tesla shares closed 0.4 percent lower Wednesday. They have risen more than 19 percent this year.

— CNBC's Phil LeBeau contributed to this report