Tesla just launched direct car rentals at two California stores as the EV giant scrambles to combat plummeting sales after federal tax credits expired. Starting at $60 per day, the program includes free Supercharger access and Full Self-Driving trials, signaling how desperately automakers need new revenue streams in the post-incentive era.
Tesla is betting that if Americans won't buy its cars, maybe they'll rent them instead. The company quietly launched a direct rental program at two California stores in San Diego and Costa Mesa, marking a dramatic pivot as the entire EV industry grapples with the end of federal tax incentives.
The timing isn't coincidental. After the $7,500 federal EV tax credit expired on October 1st, demand for electric vehicles is expected to crater. Tesla's own Q3 delivery numbers already showed consumers rushing to use credits before they disappeared, creating an artificial sales surge that's now reversing.
"We've seen this movie before," says one industry analyst who requested anonymity. "When incentives disappear, so do customers." The rental program represents Tesla's attempt to put vehicles to work rather than let them collect dust in showrooms.
The economics are telling. At $60 per day for a three-to-seven-day rental, Tesla can generate $1,800 monthly from a single vehicle - not far from a typical lease payment. More importantly, the company is sweetening the deal with perks that showcase its ecosystem: free Supercharger access and supervised Full Self-Driving trials that would normally cost extra.
Tesla's also dangling a $250 purchase credit for renters who decide to buy, essentially turning the rental program into an extended test drive. It's a smart play that cuts out middlemen like Hertz, which already offers Tesla rentals but keeps most of the revenue.
The broader EV industry is feeling the pressure. Pure-play electric automakers like Rivian and Lucid Motors don't have the luxury of gas-powered models to fall back on. They're watching inventory pile up and scrambling for creative solutions.
"This is about survival," notes another industry insider. "These companies went all-in on EVs betting that government support would create sustained demand. Now they're finding out what happens when the training wheels come off."
Tesla's rental program, while small, signals a larger strategic shift. The company has historically focused on direct sales, building a network of company-owned stores and service centers. Adding rentals transforms those locations into revenue-generating assets rather than just cost centers.
