The Tesla Model 3 is coming soon, and the US car rental market will be filled with the most expensive vehicles in the world.
But it won’t be for a long time.
That’s according to new research from CarRental Analytics, which found that, over the next year, the most affordable Model 3 in the US will cost a whopping $34,500.
That’s roughly half the cost of a similarly sized luxury car, including its engine, battery pack, tires and interior.
That means car rental companies will have to be willing to put a premium on the Model 3’s high-end credentials to get it into the hands of the average consumer.
That means the cost will have more to do with how much people are willing to pay to get their Model 3s out of the driveway than any specific luxury car’s specs.
“The car rental industry will have an enormous amount of competition for people to buy a Model 3 because the Model S is the most popular car in the market,” said Mark Jankowski, an analyst at CarRent Analytics.
“The Model S will be in more demand than the Model X and Model 3.
If you’re not a Model S owner, you’re more likely to see someone with an S in the car rental pool.”
That means it’s possible that Tesla’s newest model could see a significant surge in demand as people buy up the Model IIIs it has been designed to replace.
That could force the market to absorb the cost increase.
“That means there’s going to be a premium that goes to the Model 2, the Model A, the A and Model X,” Jankowsky said.
“It’s going be really hard to get into the Model T and Model Z.”
That could also put a crimp in the growth of other luxury car rental services like leasing companies.
If the Model 4 can’t get in the rental game, those rental companies are going to have to come up with a cheaper alternative.