Tesla is fighting the EV sales slump with short-term rentals

Tesla is now in the business of short-term car rentals, as the company tries to mitigate falling sales in the US following the expiry of federal tax credits for electric vehicles. Rentals are currently being offered in two California Tesla stores in San Diego and Costa Mesa, with plans to expand to more locations by the end of this year, Electrek reports.

Vehicles can be rented for three to seven days, with prices starting at $60 per day, depending on the Tesla model. To sweeten the deal, Tesla is allowing customers to charge the vehicles at Supercharger locations and use supervised Full Self-Driving for free, alongside providing a $250 credit for renters who choose to purchase a Tesla.

Third-party rental services like Hertz already have Tesla vehicles available in their fleets, but Tesla’s new program cuts out the middleman for anyone who wants to hire from the company directly. This launch comes as demand for EVs is expected to decline in the US following the $7,500 federal tax credit ending on October 1st. Now that people have already rushed to use those credits before they disappear, EV-only vehicle companies like Tesla, Rivian, and Lucid are trying to find ways to prevent their cars from languishing in showrooms.