Tesla has updated its Extended Service Agreement (ESA) in the U.S., launching a monthly subscription offer and extending the length of coverage, giving owners a more flexible and affordable way to extend their vehicle’s warranty beyond the standard factory warranty.
The plan, which is currently not available in Canada, is available to U.S. owners through the Tesla app, provides up to four additional years or 100,000 miles of protection, whichever comes first.
Previously, Tesla’s extended warranty options were limited to just two years or 25,000 miles beyond the standard 4-year/50,000-mile Basic Vehicle Limited Warranty. The new ESA subscription effectively doubles that limit, offering Tesla owners added confidence and coverage during long-term ownership.
Monthly Pricing by Model
- Model 3: $50/month
- Model Y: $60/month
- Model S: $125/month
- Model X: $150/month
What’s Covered?
There have been no changes to the items that are included/excluded under the updated warranty program. The ESA subscription covers the cost of repairs or replacements needed due to failures of most Tesla supplied or manufactured parts, subject to a $100 deductible per service visit.
The plan does not include coverage for the 12V battery, high-voltage battery, drive unit, cosmetic damage, bodywork, or normal wear-and-tear items such as tires and brake pads. It also excludes repairs stemming from accidents or unauthorized modifications.
Who Can Subscribe?
To be eligible, a vehicle must still be within its Basic Vehicle Limited Warranty period. Tesla will notify owners via the Tesla app about 3 months before their warranty expires, reminding them to enroll if they choose to do so. At this time, ESA subscriptions are not available for leased vehicles, although Tesla says owners who purchase their leased vehicles may become eligible by the end of 2025.
Additionally, the company plans to roll out eligibility to used titled vehicles in the near future. There was no mention of when, or if, the monthly option will extend to Canadian owners.
How to Enroll
Tesla owners can subscribe via the Tesla app:
- Open the app and navigate to Upgrades > Service Plans > Extended Service Agreement.
- Review the monthly pricing and terms.
- Tap Subscribe and confirm your payment method.
Currently, the ESA subscription is available for the Model S, Model 3, Model X, and Model Y, with Cybertruck support expected to launch soon.
Tesla Extended Warranty in Canada
While Tesla does offer an ESA option in Canada, there is also a third-party extended warranty offered north of the border that is more affordable and has greater coverage than Tesla’s option. CBI & Finance third-party extended warranty, launched in 2023, is available to Tesla owners in British Columbia, Alberta, Ontario, Quebec, New Brunswick, and Nova Scotia. The coverage applies to vehicles under 10 years old with less than 200,000 km and offers flexible terms from 12 to 60 months. Pricing for Model 3/Y starts at C$2,700 for one year or C$3,100 for five years with unlimited mileage, while Model S/X coverage starts at C$3,300 for one year or C$3,700 for five years. In comparison, Tesla’s own ESA costs C$2,700 for two years or 40,000 km.
