Tesla said today it was lowering the price of its Model 3 saloon by $1,100, after the electric carmaker ended its costly customer referral programme. 

The second price cut this year brings down the cost of its least expensive variant to $42,900, according to the company's website. 

The cost would drop to about $35,000, after about $8,000 of credits and fuel savings, Tesla's chief executive  Elon Musk tweeted. 

In a reply to a Twitter user on when Tesla would drop the Model 3 base price to $35,000, without credits, Musk said, "We're doing everything we can to get there. It's a super hard grind." 

Tesla, which does not use traditional advertising and marketing, introduced its customer referral programme in 2015, but discontinued it on February 1. 

The programme had evolved over the years.

In its latest version, Tesla's personal referral codes gave new buyers six months of free supercharging and prizes for existing owners such as launching personal photos into deep space or invites to a Tesla event. 

Tesla delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the US to offset a reduction in a green tax credit. 

The company is rapidly ramping up production of its Model 3 sedan and lower prices could help it reach a broader customer base than its pure luxury vehicles. 

When asked about lower prices in Europe, Musk tweeted that the value added tax of about 20% and import duties of about 10% usually result in a 30% higher cost in Europe.