Tesla is rolling out a new car rental program at select U.S. stores as sales decline following the expiration of the federal tax credit.
The program lets customers rent a Tesla for up to seven days, with daily rates starting at $60. It also offers additional benefits such as complimentary charging and a purchase credit if the renter chooses to buy the vehicle.
Tesla’s U.S. demand, like that of many other electric vehicle makers, has dropped following the expiration of the federal EV tax credit last quarter, which had previously accelerated purchases. As unsold inventory accumulates at dealerships nationwide, Tesla has introduced the strategy of offering short-term rentals directly from its stores.
Customers can rent a vehicle for a minimum of three days and up to seven, with daily rates beginning at $60 and varying by model. While Tesla hasn’t confirmed which models are included, the base rate likely applies to entry-level options like the Model 3 or Model Y, and no exclusions have been officially stated.
The rental includes unlimited mileage, though drivers are restricted from traveling beyond the state where they rented the vehicle. Customers who purchase a Tesla within seven days of their rental can receive a credit of up to $250 toward the purchase. The program will be available until December 31.
Tesla seems to be using the initiative to demonstrate the convenience of owning one of its cars, offering free Supercharging and access to Full Self-Driving (Supervised) with every rental. The program is initially launching at a few locations in Southern California.
Meanwhile, rental giant Hertz had previously acquired a substantial number of Tesla cars to electrify its fleet. However, over the past two years, Hertz has been selling off those vehicles as falling resale values and Tesla’s repeated price cuts impacted its financial returns.
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