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Uber reports success with Tesla rental program after 1 year

Tesla Model 3 at Hertz (Credit: Hertz)

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Uber kicked off its Tesla rental program with Hertz roughly one year ago, and the company has published a report on its progress.

Uber’s report, published by an analyst within the company, Rainer Lempert, details the Tesla rental program’s first year in operation. The analysis primarily focuses on the program’s sustainability, how drivers reacted to the new program, and its equitability. Overall, Uber has found success, especially in their efforts to decarbonize, but the report lacks a focus on how the program has affected Uber itself.

Uber’s Hertz Tesla rental program is a relatively simple one. For roughly $334 per week (depending on location), a driver is given a Tesla Model 3 and essential maintenance and insurance. Furthermore, EV drivers are given an extra dollar per ride, up to $4,000 annually, to help recoup costs. Finally, drivers in the Hertz program receive 45% off charging at EVgo charging locations. Oh, and Uber will even pay you $40 to get to the rental site in the first place.

Mr. Lempert’s report begins with basic statistics regarding the Tesla rental program. The partnership and subsequent program started in October of 2021 and, as of August of this year, has completed over 5 million trips, 40 million miles, and been tested in 30 different U.S. markets. In turn, the program has prevented 19.9k metric tonnes of carbon emissions, or roughly 2.1 million gallons of gas, from being burned.

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Trips completed by Hertz Tesla vehicles in San Francisco and Oakland during the weeks of November 21, 2021, and May 22, 2022, respectively. Trip start and end points are jittered to protect privacy. – Credit: Rainer Lempert / Uber

Mr. Lempert’s research becomes even more interesting in its details regarding the markets it has served and the drivers that have used it. Foremost, the program has served as a significant aid for Uber in achieving its EV implementation goals. 95% of drivers had never driven an EV before entering the program, and 77% now believe they will either stay with the program or purchase an electric vehicle.

Percentage of on-trip miles completed by ZEVs (including Hertz Tesla vehicles) on the Uber platform in the US. – Credit: Rainer Lempert / Uber

The final accomplishment noted in the report was the equity achieved by the program. EVs are often seen as a vehicle of the middle and upper classes, particularly in the U.S., where the researcher notes that distribution remains heavily weighted towards higher-income car buyers. Despite this market trend, the program had a fairly even spread among different income brackets, resembling the average car market in the U.S. more broadly.

Left: Percentage of California vehicle registrations by ZCTA-level median household income quintile. Right: Driver home addresses by ZCTA-level median household income quintile. – Credit: Rainer Lempert / Uber

Where the report is lacking is in detail on the program’s effect on Uber. Uber has long battled profitability, only recently breaking even with quite slim margins. But with the prospect of cheaper transportation, has the company been able to increase profits? Or, at the very least, have Tesla drivers been able to attract more rides than their gas-powered counterparts?

Looking past Uber’s ever-lasting profitability question, the program is achieving positive results, at least by the metrics of sustainability, driver satisfaction, and “equitable access,” according to this report. Hopefully, this can lead to other companies, even those outside the ride-sharing business, aiding their employees in affording and using electric vehicles in their day-to-day transportation needs.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla VP explains latest updates in trade secret theft case

Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.

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tesla 4680
Credit: Tesla Inc.

Tesla Vice President Bonne Eggleston explained the latest updates in a trade secret theft case the company has against a former manufacturing equipment supplier, Matthews International.

Back in 2024, Tesla had filed a lawsuit against Matthews International, alleging that the firm stole trade secrets about battery manufacturing and shared those details with some of Tesla’s competitors.

Early last year, a U.S. District Court Judge denied Tesla’s request to block Matthews International from selling its dry battery electrode (DBE) technology across the world. The judge, Edward Davila, said that the patent for the tech was due to Matthews’ “extensive research and development.”

Tesla is suing a former supplier for trade secret theft

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The two companies’ relationship began back in 2019, as Tesla hired Matthews to help build the equipment for its 4680 battery cell. Tesla shared confidential software, designs, and know-how under strict secrecy rules.

Fast forward a few years, and Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.

Now, the latest twist, as this month, a Judge issued a permanent injunction—a court order banning Matthews from using certain stolen Tesla parts or designs in their machines. Matthews is also officially “liable” for damages. The exact amount would still to be calculated later.

Bonne Eggleston, a VP for Tesla, said on X today that Matthews is a supplier who “exploited customer IP through theft or deception,” and has no place in Tesla’s ecosystem:

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Tesla calls this a big win and warns other companies: “Buyer beware—don’t buy from thieves.”

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Matthews hit back with a press release claiming victory. They say an arbitrator ruled they can keep selling their own DBE equipment to anyone and rejected Tesla’s request for a total sales ban. They call Tesla’s claims “nonsense” and insist their 20-year-old tech is independent. Both sides are spinning the same narrow ruling: Matthews can sell their version, but they’re blocked from using Tesla’s specific secrets.

What are Tesla’s Current Legal Options

The case isn’t over—it’s moving to the damages phase. Tesla can:

  • Push forward in court or arbitration to calculate and collect huge financial penalties (potentially $1 billion+ if willful theft is proven).
  • Enforce the permanent injunction with contempt charges, fines, or even jail time if Matthews violates it.
  • Challenge Matthews’ new patents that allegedly copy Tesla’s work, asking courts to invalidate them or add Tesla as co-inventor.
  • Seek extra damages, lawyer fees, and possibly punitive awards under the federal Defend Trade Secrets Act and California law.

Tesla could also refer evidence to federal prosecutors for possible criminal trade-secret charges (rare but serious). Settlement is always possible, but Tesla’s fiery public response suggests they want full accountability.

This isn’t just corporate drama. It shows why trade secrets matter even when Tesla open-sources some patents, confidential know-how shared in trust must stay protected. For the EV industry, it’s a reminder: steal from your biggest customer, and you risk losing everything.

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Tesla Cybercab includes this small but significant feature

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

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Credit: Tesla

Tesla Cybercab manufacturing is strikingly close, as the company is still aiming for an April start date. But small and significant features are still being identified for the first time as production units appear all over the country for testing and for regulatory events, like one yesterday in Washington, D.C.

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

This was for everyone, including the disabled, who are widely reliant on ride-sharing platforms, family members, and medical shuttles for transportation of any kind. Cybercab aims to change that, and Tesla evidently put a focus on those riders while developing the vehicle, evident in a small but significant feature revealed during its appearance in the Nation’s Capital.

Tesla Cybercab display highlights interior wizardry in the small two-seater

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Tesla has implemented Braille within the Cybercab to make it easier for blind passengers to utilize the vehicle. On both the ‘Stop/Hazard Lights’ button and the Door Releases, Tesla has placed Braille so that blind passengers can navigate their way through the vehicle:

This is a great addition to the Cybercab, especially as Full Self-Driving has been partially pointed at as a solution for those with disabilities that would keep them from driving themselves from place to place.

It truly is a great addition and just another way that Tesla is showing they are making this massive product inclusive for everyone out there, including those who have not been able to drive due to not having vision.

The Cybercab is set to enter mass production sometime in April, and it will be responsible for launching Tesla’s massive plans for an autonomous ride-sharing program.

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Elon Musk

Tesla and xAI team up on massive new project

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

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Credit: Grok

Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.

Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.

Musk said:

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“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”

Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.

Tesla announces massive investment into xAI

The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.

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From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.

However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.

Musk maintains that there is no other company on Earth that will be able to do this.

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