Addressing Declining EV Sales Through Short-Term Rentals

In an effort to address diminishing U.S. sales following the discontinuation of federal EV incentives, Tesla is introducing a short-term car rental program.

Rental Availability and Expansion Plans

Currently, Tesla offers its vehicles for rent at two Californian locations—San Diego and Costa Mesa—with intentions to extend this availability to more stores by year-end.

Flexible Rental Options and Pricing

Available rental periods range from three to seven days, beginning at a daily rate of $60, contingent on the chosen model.

Tesla is making the offer more attractive by including complimentary vehicle charging at Supercharger stations and granting access to its supervised Full Self-Driving features free of charge. Additionally, renters who decide to buy a Tesla receive a $250 credit.

Direct Rentals Versus Third-Party Services

While companies like Hertz have included Tesla models in their rental fleets, Tesla's new initiative allows customers to bypass third-party services by renting directly from the manufacturer.

Anticipated Decrease in EV Demand

This rental venture is timely, as demand for electric vehicles is projected to decline in the U.S. after the elimination of the $7,500 federal tax credit on October 1st. With prospective buyers having rushed to capitalize on these tax incentives before their deadline, manufacturers dedicated solely to EVs, such as Tesla, Rivian, and Lucid, are exploring strategies to prevent growing inventory in showrooms.