Tesla Is Fighting the EV Sales Slump with Short-Term Rentals

Why It Matters

By renting directly from its fleet, Tesla can generate incremental revenue and convert renters into purchasers, mitigating the impact of fading tax incentives. The program also signals a broader industry shift toward flexible ownership models as EV demand softens.

Summary

Tesla has launched a short‑term rental program for its electric vehicles in two California stores, San Diego and Costa Mesa, with plans to expand to additional locations by year‑end. Rentals run three to seven days, start at $60 per day, include free Supercharger use and supervised Full Self‑Driving, and give renters a $250 credit toward purchase. The initiative aims to counter a slowdown in U.S. EV sales after the $7,500 federal tax credit expired on Oct. 1, keeping inventory moving and attracting potential buyers.