Tesla has begun offering short-term rentals of its electric vehicles directly from select U.S. stores as sales decline following the end of the federal EV tax credit. The program starts at $60 per day and includes free Supercharging and Full Self-Driving features. It aims to attract potential buyers with incentives like a $250 purchase credit.
Tesla initiated a pilot rental program for its electric vehicles in response to weakening U.S. demand after the $7,500 federal tax credit for new EVs expired on October 1, 2025. This change pulled forward purchases, leading to a crash in sales; Tesla reported a 4.3% drop in year-to-date deliveries despite a 7.5% increase in the third quarter, according to Cox Automotive data.
The rentals are currently available at two stores in Southern California: one in San Diego and one in Costa Mesa. Customers can rent for a minimum of three days and a maximum of seven days, with pricing starting at $60 per day for Model 3 and Model Y, $75 for Cybertruck, and $90 for Model S or Model X. Only Premium trims are offered, excluding base Standard or high-performance Performance and Plaid versions. Rentals include unlimited mileage, free access to Superchargers, supervised Full Self-Driving, and the Tesla app, but vehicles cannot leave California.
To encourage purchases, Tesla provides a $250 credit toward a new vehicle if ordered within seven days of the rental end. Renters must be at least 21 years old with a valid U.S. driver's license, credit card, and proof of insurance; the program runs until the end of 2025. A $30 fee applies if the vehicle is returned with less than 50% battery charge.
This move addresses inventory buildup amid broader EV market challenges, particularly for Tesla, Rivian, and Lucid, which rely solely on electric models. Policy inconsistency has discouraged adoption compared to Europe and Asia. Meanwhile, Hertz has been selling off its Tesla fleet over the past two years due to declining resale values from Tesla's price cuts.
