)I'm thinking leasing Tesla cars to my friends as a business

[Vinny809]

I'm thinking of purchasing Teslas and leasing it to my friends and would like your opinion/advice.

The reason i'm doing so is in the event robotaxis become a thing in the next 5 years, my friends will be paying my depreciation until each car in my fleet will make me $30k a year as a robotaxi.

What if robotaxis don't come to fruition? I'll will not mind taking a few thousand dollar per car hit. No biggie. I think Tesla will raise FSD prices soon with the release of FSD version 9.

I have a few questions-

1) Should I start a LLC for this?
2) If I start a LLC, can I still deduct $7000 tax credit under Biden's Green plan for my individual taxes (not LLC)
3) What are the legalities of doing this?
4) What are other risks that I have not yet thought of?
5) What's a fair rate to charge my friends if I'm the one taking the tax credit?
6) How does insurance work? Are they able to get their own policy even though its registered in my name/LLC? Do I need insurance?

Thanks in advance.

I guess plan B could be renting it out on Turo.

I'm located in California.

 

[CLK350]

Sounds like a great idea - especially with the MY's better quality/ fewer parts maintenance should be reduced.
Based on some feedback I've read I would never rent my car on Turo. They are reportedly utterly useless in case there are issues, aka accidents, insurance etc.
Can't help w/ legal or tax issues. But in my simple mind, I'm thinking why not make a financial arrangement with a car rental agency, or a taxi company. That would outsource much of your administrative work.

 

[glide]

If you think robotaxis are happening, I have a bridge to sell you.

And there is no $7000 tax credit. It’s not happening.

As far as business ideas go, this is going to make you zero dollars. So hopefully you’re doing it for another reason.

I would love to see your math on this venture.