Tesla turns to rentals as US sales slump after EV tax credit expires | Latest Tech News
Tesla is shifting gears from promoting automobiles to renting them out after a collapse in US demand, launching a short-term rental program out of its shops as inventories swell across the nation.
The company quietly rolled out the new service in early November, beginning with its San Diego and Costa Mesa, Calif., areas, according to the news websites Electrek and Teslarati.
The program comes as Tesla shareholders accredited a whopping $1 trillion pay package deal for CEO Elon Musk, who is banking that the company will gain vital traction in the humanoid robots industry.
Tesla is shifting gears from promoting automobiles to renting them after a collapse in US demand. Christopher Sadowski
Customers can rent a Tesla for three to seven days at a time at costs beginning around $60 a day, relying on the model.
The program covers Model 3, Model Y, Model S, Model X and Cybertruck automobiles.
Each rental contains free “Supercharging” and “Full Self-Driving (Supervised),” Tesla’s superior driver-assist characteristic, with no mileage limits.
But renters can’t take the automobiles out of the state where they’re booked.
Customers who resolve to buy a Tesla within a week of their rental obtain a $250 credit toward their buy.
The program is the automaker’s latest attempt to put more drivers behind the wheel as US electric-vehicle sales falter following the expiration of the federal EV tax credit last quarter.
The rollout comes at around the same time that Tesla shareholders accredited a whopping $1 trillion pay package deal for CEO Elon Musk. Getty Images
The loss of the $7,500 incentive has eaten into shopper demand while placing a dent in Tesla’s revenue margins.
Just prior to the expiration of the tax credit, prospects made a run on dealerships and snapped up last-minute offers — briefly boosting the company’s sales.
The company’s new rental initiative is predicted to develop past Southern California before the end of the 12 months.
Tesla first hinted at getting into the rental market two years in the past when job listings surfaced for a “Tesla Rental Program” pilot in Texas.
The current rollout marks the first nationwide implementation of the idea.
The carmaker is framing the new rentals as an prolonged test-drive program aimed at changing hesitant consumers slightly than competing with conventional businesses.
Each rental contains free Supercharging and Full Self-Driving (Supervised), Tesla’s superior driver-assist characteristic, with no mileage limits. Christopher Sadowski
“Rent a Tesla and see how it makes every errand, commute, and road trip more fun,” the company said in an e mail to prospects obtained by Teslarati.
Still, the transfer highlights the extent to which Tesla’s US sales have fallen amid price wars, increased financing prices and renewed competitors from legacy automakers.
In the first eight months of 2025, Tesla’s sales in the US dipped by 24% in contrast to the same period a 12 months in the past.
By the third quarter of this 12 months, Tesla’s market share fell to as low as 38% — down from practically 80% a number of years in the past and 49% a 12 months earlier.
Hertz, which once wager big on electrifying its fleet with Teslas, has been unloading the automobiles over the past two years as plunging resale values eroded earnings.
The Post has sought remark from Tesla.
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