Tesla's New "Extended Warranty" May Not Be Worth the Trouble

Popular EV maker Tesla added a new offer for its buyers. It’s sort of an extended warranty that is intended to give owners more peace of mind. In the U.S., it’s currently available for the 2012-2020 Model S, 2015-2020 Model X, Model 3, or Model Y that are still covered by the Basic Vehicle Limited Warranty.

That means Model 3s and Model Ys must have less than 50,000 mi on the odometer and be no more than four years old. For the pre-2015 Model S vehicles, these limits are extended to eight years or 125,000 mi, while the post-2015 Model S and all the Model X units have their basic warranty covering eight years of usage or until the odometer shows 150,000 mi.

Model S and Model X units made and sold in the U.S. in 2021 or after are not eligible for enrollment.

In the U.S., the new Extended Service Agreement costs:

• USD1,800 for the Model 3;
• USD2,000 for the Model Y;
• USD3,100 for the Model S;
• USD3,500 for the Model X.

Besides the price of the new offer, customers agree that they will pay a deductible of $100 per service visit. The Extended Service Agreement kicks in as soon as the basic warranty is no longer valid.

In Canada, only the 2012-2020 Model S and Model X owners who have their vehicles still covered by the standard warranty can buy the Extended Service Agreement. For now, the northern neighbors get a different offer. They enjoy:

• two years or 40,000 km (24,855 mi) of coverage for CAD3,380 if the policy is purchased within 180 days of the Model S' date of delivery;
• two years or 40,000 km (24,855 mi) of coverage for CAD4,160 if the acquisition is done after the first 180 days since the Model S' date of delivery;
• four years or 80,000 km (49,710 mi) of coverage for CAD6,865 if the policy is purchased within 180 days of the Model S' date of delivery;
• four years or 80,000 km (49,710 mi) of coverage for CAD7,645 if the acquisition is done after the first 180 days since the Model S' date of delivery;
• two years or 40,000 km (24,855 mi) of coverage for CAD3,900 if the policy is purchased within 180 days of the Model X’s date of delivery;
• two years or 40,000 km (24,855 mi) of coverage for CAD4,680 if the acquisition is done after the first 180 days since the Model X's date of delivery;
• four years or 80,000 km (49,710 mi) of coverage for CAD7,695 if the policy is purchased within 180 days of the Model X’s date of delivery;
• four years or 80,000 km (49,710 mi) of coverage for CAD8,530 if the acquisition is done after the first 180 days since the Model X's date of delivery.

Whilst the coverage is active, Tesla confirms that it is responsible to repair or replace “any covered part as required due to a failure.” The automaker defines “failure” as the “complete inability of any covered part to perform the function(s) for which it was designed due to defects in material or workmanship of any parts manufactured or supplied by Tesla that occur under normal use.”

The Extended Service Agreement (ESA) does not cover the battery, the drive unit, tires, wheels, or paint defects, nor does it apply to vehicles that have been fire-damaged, flood-damaged, or used for racing. Similarly, buying the ESA does not give owners free access to Tesla Roadside Assistance.

The full list of exclusions from the policy is available at the end of this article in .PDF format.

Besides that, to benefit from the ESA, customers must perform all the recommended or required authorized service visits, drive the vehicle normally, and do no modifications to the vehicle.

Tesla also says that the decision of whether to repair or replace a part or to use a new or remanufactured part will be made by the brand, “in its sole discretion.”

Finally, since the ESA is not covering the battery after the standard warranty expires, this offer may not be worth buying. But if it feels like a good option for you, then make sure to read all the Terms and Conditions before paying. You'll find the ESA in the Upgrade menu of the Tesla App. If it's not showing yet, make sure to update the app.