Tesla has introduced a short-term car rental service in response to declining sales in the U.S. following the expiration of federal tax credits for electric vehicles (EVs). The rentals are currently available at its locations in San Diego and Costa Mesa, California, with plans to extend to additional locations by year’s end.
Customers can rent Tesla vehicles for periods ranging from three to seven days, with rates starting at $60 per day, depending on the model chosen. The company is also offering incentives, including free charging at Supercharger stations, access to supervised Full Self-Driving features at no charge, and a $250 credit applicable toward the purchase of a Tesla for renters.
While third-party rental services, such as Hertz, already include Tesla models in their fleets, this new initiative allows customers to rent directly from Tesla, potentially streamlining the process. This service launch coincides with anticipated declines in EV demand in the U.S., following the end of a $7,500 federal tax credit on October 1. Many consumers rushed to utilize these credits before their expiration, leaving EV manufacturers like Tesla, Rivian, and Lucid seeking alternative strategies to maintain sales momentum and avoid excess inventory.
As the market for electric vehicles adjusts, the effectiveness of Tesla’s rental strategy in boosting demand remains to be seen.
Source: https://www.theverge.com/news/817477/tesla-direct-short-term-ev-rentals-tax-credit