Tesla Extended Warranty

A Tesla has a highly sophisticated electric powertrain and a plethora of onboard technology. Advanced tech usually means expensive repairs when things fail, which can make a Tesla extended warranty a valuable investment.

Tesla extended warranties, called Extended Service Agreements, are only available for the Model S and Model X, not the Model 3 or Model Y. While third-party warranty options are available, not all companies cover luxury brands or electric vehicles. In our research of the best extended car warranty companies, we learned that the popular provider CarShield offers protection for Tesla models.

Tesla offers a 2-year/25,000-mile and 4-year/50,000-mile warranty for the Model S and Model X only, which were produced from 2012 to 2020. The Extended Service Agreement (ESA) is unavailable for the Model 3 or Model Y, and Tesla has not announced extended warranty availability for the forthcoming Cybertruck.

The ESA covers many parts of the vehicle, but not the EV battery or Drive Unit, which are covered only by their original 8-year warranties. Coverage from Tesla’s Extended Service Agreements begins when the new-car limited warranty expires.

Tesla Extended Warranty Exclusions

In addition to not extending coverage of the EV high-voltage battery and Drive Unit, Tesla extended warranty coverage does not include maintenance and wear items, including filters, liquids, and brake pads. Also not covered: suspension alignment and shock absorbers, tires, and upholstery wear and tear. The Terms and Conditions include a complete list of exclusions.

A Tesla extended warranty can cost between $2,500 and $6,350, depending on the extended service agreement you choose. You will pay less overall if you buy the extended warranty within 180 days of purchasing your vehicle. Otherwise, you could pay hundreds of dollars more for extended coverage.

Here are the prices advertised on Tesla’s website for an extended warranty.

Various factors will help you decide whether a Tesla extended warranty is worth it, including existing coverage, vehicle reliability, maintenance costs, and the quality of the extended warranty.

When considering the long-term investment you make when purchasing a vehicle, it’s essential to consider all scenarios to protect your investment. To help you determine whether or not a Tesla extended warranty is right for you, we look at each of these factors in detail in the sections below.

Tesla Factory Warranty

When considering extended auto warranty coverage, first be aware of what is covered by the Tesla warranty. If you plan to sell your vehicle before the factory warranty expires, there is no reason to purchase a Tesla extended warranty.

Tesla wins a lot of admiration for its engineering and technology, but only certain parts of the warranty stand out as above average among luxury brands.

Tesla considers the lithium-ion high-voltage battery to be functioning properly if it retains at least 70 percent of its rated capacity. Other EV makers have a similar policy. Because a battery’s capacity does decline over time, this is considered normal wear.

The Tesla warranty is transferable if you sell the vehicle to a private party “when a vehicle ownership transfer is performed through Tesla,” according to the company.

Tesla Warranty Exclusions

Exclusions to the Tesla warranty are similar to those of other carmakers’ warranties (abuse, negligence, racing, damage from towing, etc.), but there is one that stands out: the warranty can be voided if the owner fails to install vehicle software updates after receiving a notification that an update is available.

That one is critical because Tesla regularly issues over-the-air software updates that affect the vehicle’s performance, including power and braking. Don’t ignore Tesla’s update notifications the way you might disregard messages from your computer or smartphone to download software updates.

Parts, Body, And Paint Repair Limited Warranty

When you get a repair covered by your Tesla warranty, the parts used are covered by their own 12-month warranty. Specific parts of the vehicle have different, longer coverage terms:

• Sheet metal: Lifetime limited warranty
• Drive unit: 4 years/50,000 miles
• Vehicle high voltage battery: 4 years/50,000 miles
• Wall connectors: 4 years
• Touchscreen and microcontroller unit: 4 years

Tesla Used Vehicle Limited Warranty

Unlike most auto brands, Tesla does not use the term “certified pre-owned” for its used cars. It does, however, provide a 70-point inspection and additional warranty coverage for the Tesla Model S and Model X for added peace of mind. You must buy a used Tesla directly from the company to get that coverage.

Keep in mind, this coverage is not available on all Tesla models, and its availability varies by vehicle age and mileage:

• Model S and Model X vehicles that are under 4 years old and have less than 50,000 miles get the balance of original Battery and Drive Unit Limited Warranty, plus a Used Vehicle Limited Warranty that runs for 4 years/50,000 miles, whichever comes first. This coverage begins on the customer’s delivery date.
• Model S and Model X vehicles that are 4 to 6 years old or have over 50,000-100,000 miles get the remainder of the original Battery and Drive Unit Limited Warranty and also come with a Used Vehicle Extended Limited Warranty. This coverage runs for 2 years/100,000 miles.
• The Model 3, Tesla’s entry vehicle, simply gets any remainder of the original New Vehicle Limited Warranty and Battery and Drive Unit Limited Warranty. Tesla does not offer an extension of coverage for this model.

Tesla Reliability

Another factor to consider before purchasing an extended warranty is vehicle reliability. Tesla is one of the most scrutinized carmakers, and it made the news in previous years when its efforts to ramp up production to meet the demand for the Model 3 resulted in some quality glitches. According to Consumer Reports, many problems involved body hardware issues, such as trunks not closing or loose body trim panels. Similar problems, along with paint issues, affected the more expensive Model S.

Consumer Reports had put both Tesla models on its “Recommended” list but later removed them. In November 2019, the publication put both Tesla models back on its Recommended list, because owner surveys showed Tesla had largely addressed the problems. Complaints about technical problems, including the adaptive cruise control, vehicle cameras, and warning lights, also declined.

Based on its owner surveys, Consumer Reports gave low marks to the Model X, Tesla’s SUV with unusual, vertically opening rear “falcon doors.” (Car enthusiasts call these “gullwing doors.”) The doors, in particular, were criticized for problems, but Consumer Reports also cited other issues, such as water leaks, noises, and overall “worse-than-average” reliability.

Overall, however, Consumer Reports says Tesla rates highest among all brands for owner satisfaction. That is according to what owners said in their surveys.

The J.D Power 2021 U.S. Vehicle Dependability StudySM found Tesla vehicles to have 176 problems per 100 vehicles, a number that ranked it below the industry average of 121. Tesla was not eligible for formal ranking because it did not meet study criteria because Tesla did not grant J.D. Power permission to survey owners in 15 states where it is required.

Tesla Maintenance Cost

It is difficult to find Tesla repair price data. RepairPal, an independent source for vehicle repair data and cost estimates, does not track Tesla.

Xcelerate Auto, which was started in 2015, is one company that offers extended warranties for Teslas and other EVs. It listed costs for some Tesla repairs:

You can research repairs and owners’ experiences with reliability on the Tesla website owners’ forum. While anyone can view the forums, only registered Tesla owners can post. It is somewhat brave for a carmaker to host such an open forum, where owners can air their complaints and seek advice from others. For example, when some Model S owners experienced problems with the electric Drive Unit, Tesla simply replaced it as an expedient repair, and sometimes more than once for some individual owners.

Purchasing an extended service agreement from Tesla for your Model S or Model X isn’t your only option. In fact, third-party warranty companies tend to be more flexible and offer drivers more coverage options.

However, Tesla is a young company, and most of its models on the road are also young. This means that aftermarket warranty companies may not necessarily offer the coverage you’d get for a mainstream brand’s vehicle. You will need to contact third-party warranty companies to verify if they cover any Tesla models.

Best Extended Warranty For Tesla

After we analyzed and compared coverage for Tesla models, we believe third-party companies like CarShield offer better extended warranties for Tesla owners. These companies provide more customizable plans to fit your budget while offering protection to help ensure your peace of mind.

In this article, we reviewed Tesla’s extended warranty and compared its cost and coverage against a leading third-party vehicle service contract company. Our research shows buying an extended warranty for your Tesla vehicle saves you money in the long run and gives you peace of mind. We recommend getting quotes from third-party warranty companies so you can compare coverage options and plan prices.

Tesla Auto Extended Warranty: FAQ

Below are frequently asked questions about Tesla extended warranties.