Tesla is aggressively expanding its direct rental program beyond California, launching a $60/day service in five major U.S. cities to combat post-subsidy sales slumps.

Tesla isn’t just selling cars anymore—it’s renting them directly to you for less than the cost of a standard rental car. Following a quiet pilot in California, the automaker is rapidly expanding its “try-before-you-buy” rental service to five new major markets this week, signaling a desperate need to stimulate demand now that federal tax credits have vanished.

The Expansion: Austin, Boston, and Beyond

According to new job listings for “Rental Readiness Specialists” spotted today, Tesla is launching rental operations in Austin, Nashville, Boston, Fort Worth, and Houston.

This marks the first major expansion of the program outside of its initial pilot locations in San Diego and Costa Mesa. By hiring its own fleet management staff, Tesla is bypassing traditional rental agencies like Hertz—who have notably pulled back on their EV ambitions—to control the entire customer experience directly.

The Deal: Undercutting the Competition

Tesla’s pricing structure is designed to undercut traditional rental counters while showcasing its high-margin software features. The confirmed pricing tiers for the new locations are:

Model 3 & Model Y: $60/day
Cybertruck: $75/day
Model S & Model X: $90/day

“Rent a Tesla and see how it makes every errand, commute, and road trip more fun,” the program’s landing page states.

But the real value lies in the perks, which effectively make this a subsidized test drive:

Unlimited Mileage: No caps on distance.
Free Supercharging: Fuel is completely on the house.
FSD (Supervised) Included: Renters get full access to Tesla’s $8,000 Full Self-Driving software.
Purchase Incentive: A $250 credit toward a new Tesla if you buy within 7 days of your rental.

The Strategy: A “Paid Test Drive”

This program is a direct response to the harsh reality of the post-tax credit market. Since the federal EV tax credit expired on September 30, 2025, automakers have scrambled to find new demand levers.

Tesla’s solution is to monetize its inventory while aggressively marketing its software. A standard 30-minute test drive rarely converts a skeptic, but a week-long rental with free charging and self-driving capabilities might. By offering the Cybertruck at just $75/day, Tesla is also turning its most polarizing vehicle into an accessible novelty for weekend trips, potentially broadening its appeal beyond early adopters.

Tesla Expands Direct Rentals To 5 Cities: $60/Day Includes Fsd &Amp; Supercharging — Tesla Model Y with the rear seats folded. Photo credit: EVXL

EVXL’s Take

This expansion is a brilliant, if necessary, pivot. Tesla is solving three problems at once: moving stagnant inventory, generating service revenue, and collecting real-world data for its autonomy network.

Most importantly, this looks like the early infrastructure for the Tesla Network. As we reported during the “We, Robot” event in October 2024, Musk’s end-game is a fleet of autonomous Robotaxis. By building the logistics muscle now—hiring “Rental Readiness Specialists” to clean, charge, and manage a fleet—Tesla is quietly rehearsing for the day those cars rent themselves out without a driver.

Furthermore, this vertical integration mirrors the manufacturing efficiency analysts have praised. As noted in previous coverage of how Tesla could revolutionize U.S. manufacturing, Tesla’s ability to insource complex operations gives it a massive cost advantage. If Tesla can successfully run a national rental network, they aren’t just an automaker; they become the operator of the world’s largest distributed transportation utility.

Expect this program to launch in every major U.S. metro by Q1 2026. As traditional rental giants struggle with EV depreciation, Tesla will step in to own the entire vertical, eventually transitioning these “rental” fleets into the first wave of the Cybercab network.