Tesla Extended Warranty

Tesla single-handedly kickstarted the EV revolution in America, and its vehicles remain a popular option in the zero-emissions space today. Despite the hype, Teslas do occasionally have problems, and those issues sometimes occur outside of the factory warranty period. The automaker offers an extended warranty for all models, however, so let’s take a closer look.

Tesla Extended Warranty Overview

Tesla factory warranties are quite expansive, but the automaker offers an Extended Service Agreement (ESA) to cover failures beyond the warranty period. They are not super expensive in the grand scheme of things and can extend vital coverage of items that could cost thousands to repair down the road. Owners can buy the coverage at any time in the Tesla app, and coverage starts at the end of the factory warranty period.

Tesla Extended Warranty Coverage

Tesla’s ESA covers repairs related to defects in materials and workmanship of parts made by the automaker. That does not include the battery, which Tesla said is covered by a separate warranty. Interestingly, the company’s ESA states that coverage is for parts that experience failure, which it defines as a complete inability for it to perform its intended function. The ESA does not cover parts experiencing a gradual decline in performance due to normal usage.

The ESA comes with a fairly extensive list of owner responsibilities to maintain coverage, including that the vehicle be serviced within 1,000 miles or 30 days of Tesla’s recommended service intervals. If a failure occurs, the owner is required to act to protect the vehicle from further damage, even if the problem is for a non-covered part. Continuing to operate the vehicle after a failure could lead to the failed part not being covered by the ESA. The driver is also required to pull off the road and turn the vehicle off immediately when a warning light appears.

There’s also a long list of things that are not covered by the ESA, but many are standard to extended warranties and aren’t a specific Tesla exclusion. Non-covered items include:

• Damage from wrecks, collision, natural disasters, animal damage, vandalism, and more
• Commercial vehicles, including government use, delivery services, and hauling
• Racing or competition
• Modifications or repairs not carried out by a Tesla-certified service center
• Failure to take the car in for service when a failure occurs
• Wear items (tires, wheels, etc)
• Vehicles with branded titles
• Corrosion and paint defects
• Damage to a covered part caused by a non-covered part

Tesla Extended Warranty Cost

The Tesla ESA runs for two years or 25,000 miles. Pricing is difference for each Tesla model: Model S: $3,100 Model X: $3,500 Model 3: $1,800 Model Y: $2,000

The owner is responsible for a $100 deductible for each service visit.

Do You Need a Tesla Extended Warranty?

Teslas come with a four-year/50,000-mile basic warranty and an eight-year/100,000-mile powertrain warranty from the factory - pretty solid coverage. At the same time, the automaker’s vehicles are among the worst for predicted reliability, scoring well below average as a whole. If you plan on keeping your Tesla beyond the warranty period, it might be a good idea to invest in the ESA, though it’s important to carefully consider the price, your driving habits, and whether or not your particular model has been dependable during your ownership.

That said, EVs tend to have lower repair costs than internal combustion vehicles because there are fewer moving parts, few fluids to replace, and the brakes last longer due to regenerative braking handled by the electric motors. Batteries last longer than most people think, and they degrade slowly over time, so there’s generally no need to worry about a catastrophic battery replacement.

Our Take on Tesla Extended Warranty

Tesla’s spotty reliability record is enough to warrant a close look at an ESA, regardless of the model, age, or mileage. The costs aren’t that outrageous, and the peace of mind that comes from knowing that failures are covered could be enough to justify the cost. However, instead of worrying about Tesla reliability and warranty costs, it would be easier to buy an EV with better predicted reliability, such as the Kia EV6 or Hyundai Ioniq 5.

Read more on the Best Warranties in the industry here.