Tesla Changes Course to Rentals as Sales Dwindle


If you’ve ever leased a vehicle, you’re probably acquainted with prominent rental firms such as Hertz, Enterprise, Budget, and now…Tesla.

Tesla is making its foray into the car rental sector, as indicated by EV news platform Electrek.

The company is providing rentals in at least two locations in Southern California, one in San Diego and another in Costa Mesa. Tesla intends to broaden this service to additional sites across the country.

Elon Musk’s enterprise offers rentals beginning at $60 per day, requiring a minimum rental period of three days and a maximum of seven days. Rates fluctuate based on the Tesla model being rented. Rentals come with complimentary charging at Supercharging stations and supervised Full Self-Driving at no additional charge.

Customers who choose to buy a Tesla after renting can earn a $250 credit if the purchase occurs within a week of the rental period.

Tesla seeks to accomplish various objectives with this rental initiative. The perks and complimentary offerings aim to motivate individuals to experience a Tesla, with hopes that they will ultimately decide to purchase one.

Moreover, Tesla’s sales have encountered hurdles over the past year due to elements like overall EV demand and Musk’s ties to the Trump administration. The cessation of the federal tax credit for EV acquisitions is also anticipated to affect their sales figures.

Nonetheless, as Electrek highlights, companies such as Hertz have been distancing themselves from Tesla rentals. Hertz has been divesting its Tesla fleet as resale values have diminished. Considering these circumstances, Tesla may perceive a chance to eliminate intermediaries in the rental sector and establish a new source of income by offering rentals directly.