Tesla turns to $60-a-day rentals as US sales slump after EV tax credit expires

Core Insights - Tesla is transitioning from selling vehicles to offering short-term rentals due to a significant decline in US demand for electric vehicles [1][4][13] - The new rental program allows customers to rent Tesla models for three to seven days, starting at approximately $60 per day, and includes features like free Supercharging and Full Self-Driving (Supervised) [4][5][13] - The initiative is part of Tesla's strategy to increase driver engagement and sales amid challenges such as the expiration of federal EV tax credits and increased competition [5][14] Rental Program Details - The rental program is currently available in Southern California, with plans for expansion before the end of the year [8][10] - Customers can rent various Tesla models, including Model 3, Model Y, Model S, Model X, and Cybertruck, with no mileage limits [4][13] - Renters are restricted from taking vehicles out of the state where they are booked, but those who purchase a Tesla within a week of renting receive a $250 credit [5][11] Market Context - Tesla's US sales have decreased by 24% in the first eight months of 2025 compared to the previous year, with market share dropping to 38% from nearly 80% in previous years [14] - The expiration of the $7,500 federal EV tax credit has negatively impacted consumer demand and profit margins for Tesla [7][14] - The rental program is framed as an extended test-drive initiative aimed at converting potential buyers rather than competing with traditional rental agencies [11][13]