Tesla to Expand Its Rental Program to Michigan

Tesla has started formal steps to launch its direct rental operations in Michigan. A filing with the Michigan Department of Licensing and Regulatory Affairs shows the company registered a Michigan-focused limited liability company, Tesla Rental LLC, to run rental services in the state. The entity itself was originally formed in Delaware in 2021, but this filing signals Tesla’s intent to operate a corporate-owned rental fleet in Michigan—a state that has historically posed challenges for Tesla because of direct-sales regulations.

Scope of Operations

The registration describes a wide range of activities: acquiring, owning, and short-term renting of electric vehicles, plus associated services such as toll handling, charging, and roadside assistance. Tesla’s consumer offering follows the same aggressive pricing approach seen in other states, designed to be cheaper than traditional rental companies and peer-to-peer platforms while giving customers extended exposure to Tesla vehicles and features.

Pricing

• Model 3 / Model Y: $60/day

• Cybertruck: $75/day

• Model S / Model X: $90/day

Included Benefits

Tesla’s rental package includes several specific perks for renters:

• Unlimited mileage

• Complimentary Supercharging

• FSD (Supervised)

• $250 discount on the purchase of a new Tesla if the vehicle is bought within seven days of a rental

Restrictions

Rentals are limited to a maximum duration of seven days and must remain within the renter’s state of origin; interstate trips are not permitted under the program’s rules.

Strategic Aim

This expansion appears to be as much about customer acquisition and product exposure as it is about short-term revenue. Given the low daily prices, Tesla likely sacrifices margin to let prospective buyers experience its vehicles for longer than a brief test drive. That extended exposure increases the chances a renter will appreciate Tesla’s electric driving experience and ecosystem, and the $250 purchase incentive further lowers the barrier for conversion.

Longer rentals also provide an opportunity for renters to try supervised Full Self-Driving over several days, which may encourage subscriptions or eventual purchase of the feature when they buy a Tesla. Combined, these elements make the rental program a practical path to introduce more drivers to Tesla ownership.