Tesla Inc. (TSLA) is taking its rental game to the next level, and the pricing is surprisingly competitive. The electric vehicle maker is expanding its direct-to-consumer rental program across multiple US cities, bypassing traditional rental car companies entirely.
The Deal: More Than Just a Rental
Social media influencer Sawyer Merritt spotted job listings on Thursday for "Rental Readiness Specialist" positions across cities like Boston, Austin, Fort Worth, Phoenix, Houston, and Nashville. The postings reveal Tesla's plans to roll out rentals that come loaded with perks you won't find at your typical airport rental counter.
For $60 per day, renters get a Tesla Model 3 or Model Y with unlimited miles and free Supercharging throughout the rental period. Even better, Full Self-Driving access is included, giving renters a chance to test drive the controversial but increasingly capable autonomous features. Rentals can last up to 7 days.
If you fall in love with the car during your week behind the wheel, Tesla sweetens the deal with a $250 discount toward purchase if you buy within 7 days of returning your rental. It's basically an extended test drive with a purchase incentive built in.
The pricing scales up for Tesla's premium models. The Cybertruck runs $75 per day, while the Model S and Model X command $90 daily. All rentals require renters to be at least 21 years old with a valid driver's license.
Tesla initially launched this rental program at its San Diego location, where it's scheduled to run through December 31, 2025. The expansion suggests the company sees potential in owning the rental experience from start to finish.
The Bigger Vision: An Airbnb for Teslas?
This expansion fits into Elon Musk's larger vision for Tesla's business model. Musk has previously floated the idea that Tesla owners could rent out their vehicles when not in use, creating what he described as a hybrid between Uber Technologies Inc. (UBER) and Airbnb Inc. (ABNB). The concept hinges on Full Self-Driving technology becoming robust enough for autonomous operation.
FSD Gets High Marks
Speaking of Full Self-Driving, Gerber Kawasaki co-founder Ross Gerber recently praised FSD v14 as a "big step up" from version 13. Gerber said he was "pretty pleased" with the system's improvements in the latest updates, which matters for a rental program built partly on showcasing FSD capabilities to potential buyers.
Price Action: TSLA closed down 2.17% at $395.23 but recovered somewhat in after-hours trading, rising 0.60% to $397.60, according to market data.