Tesla turns to rentals as US sales slump after EV tax

Tesla turns to rentals as US sales slump after EV tax

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 permitted a whopping $1 trillion pay package deal for CEO Elon Musk, who’s banking that the company will achieve vital traction in the humanoid robots trade.

Tesla is shifting gears from promoting automobiles to renting them after a collapse in US demand. Christopher Sadowski

Customers can lease a Tesla for 3 to seven days at a time at costs beginning round $60 a day, relying on the mannequin.

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 feature, with no mileage limits.

But renters can’t take the automobiles out of the state the place they’re booked.

Customers who determine to purchase a Tesla within every week of their rental obtain a $250 credit score towards their buy.

The program is the automaker’s latest try to put more drivers behind the wheel as US electric-vehicle sales falter following the expiration of the federal EV tax credit score last quarter.

The rollout comes at round the same time that Tesla shareholders permitted a whopping $1 trillion pay package deal for CEO Elon Musk. Getty Images

The loss of the $7,500 incentive has eaten into client demand while placing a dent in Tesla’s revenue margins.

Just prior to the expiration of the tax credit score, clients made a run on dealerships and snapped up last-minute offers — briefly boosting the company’s sales.

The company’s new rental initiative is anticipated 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 concept.

The carmaker is framing the new rentals as an prolonged test-drive program geared toward changing hesitant patrons quite than competing with conventional companies.

Each rental contains free Supercharging and Full Self-Driving (Supervised), Tesla’s superior driver-assist feature, 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 electronic mail to clients obtained by Teslarati.

Still, the transfer highlights the extent to which Tesla’s US sales have fallen amid value wars, greater 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 interval 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 almost 80% a number of years in the past and 49% a 12 months earlier.

Hertz, which as soon as guess big on electrifying its fleet with Teslas, has been unloading the automobiles over the past two years as plunging resale values eroded income.

The Post has sought remark from Tesla.

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