The initiative, currently limited to dealerships in San Diego and Costa Mesa, is positioned as a response to declining EV sales following the end of a key federal tax credit.
After the expiration of the $7,500 federal EV tax credit on September 30, automakers across the board have seen a pullback in consumer demand. Tesla, while still dominating the U.S. EV market, has not been immune. The company reported a 4.3% drop in deliveries year-to-date, despite a temporary 7.5% rise in Q3. In this context, the rental program appears to be a strategy to keep inventory moving and maintain visibility among consumers reluctant to commit to an EV.
Rather than offering traditional test drives, Tesla is allowing drivers to rent top-tier models directly from its stores. This hands-on access could help dispel hesitations tied to range, charging, or driving experience—especially for those unfamiliar with EVs.
Rental Access Limited to Premium Models and In-State Use
The program is open only to Premium trims of Tesla’s lineup, including the Model 3, Model Y, Model S, Model X, and Cybertruck. Rental prices vary: Model 3 and Model Y cost $60 per day, Cybertruck $75, and Model S or Model X $90. Each rental includes unlimited mileage, complimentary Supercharging, and Full Self-Driving (Supervised)—Tesla’s most advanced driver-assist system available for public use.
According to Supercar Blondie, rentals are available for a minimum of three and a maximum of seven days. However, the cars must remain within California, and any vehicle returned with less than 50% battery charge incurs a $30 penalty. Renters must be at least 21, hold a valid U.S. driver’s license, provide proof of insurance, and pay using a credit card.
The vehicles are picked up directly from Tesla showrooms, emphasizing a direct-to-consumer approach without relying on third-party rental agencies.
$250 Credit Available Toward Purchase After Rental
To encourage rentals as a gateway to ownership, Tesla is offering a $250 rebate for customers who decide to place an order within seven days of their rental period. This tactic mirrors strategies long used by traditional dealerships—allowing extended trials with the hope of converting renters into buyers.
The rental program may serve dual purposes: clearing inventory and giving hesitant buyers a low-risk entry point into the EV ecosystem. Given the features included—such as Full Self-Driving and access to the Supercharger network—the rentals offer a close look at Tesla’s ecosystem without long-term commitment.
This credit is not tied to a specific model, giving renters flexibility to explore and then purchase the vehicle that best suits them, whether or not it’s the one they initially tried.
Limited Rollout as Tesla Tests Consumer Response
At this stage, the rental program is confined to two locations in southern California. InsideEVs notes that the rollout appears to be a pilot project, with no nationwide expansion announced yet. While Tesla hasn’t commented publicly on plans for scaling, sources cited by Supercar Blondie suggest other dealerships may follow if initial response meets expectations.
The program also coincides with Tesla’s recent move to introduce more affordable Standard trims for some models. These steps, while different in approach, both seem aimed at sustaining buyer interest as incentives shrink and competition intensifies. With the EV market growing more crowded and consumer behavior shifting, Tesla is experimenting with new models of engagement that lean heavily on its existing infrastructure and brand familiarity.
