Tesla launches new extended warranty program in the US

Tesla has launched a new Extended Service Agreement (ESA) for owners of the Model S, Model 3, Model X, and Model Y. The new extended warranty program is only available in the US but the ESA for older Model S and Model X vehicles that was previously offered is still available in Canada.

What is the coverage period?

According to the details of the new program posted to Tesla’s website the ESA covers you for 2 years or 25,000 miles. Like with the previous ESA this new one is applicable to the Model S built between 2012 and 2020 and the Model X built between 2015 and 2020. However there is a change to the coverage period as the previous ESA for these vehicles could be purchased for either 2 years or 4 years. The price has also increased (more on that below).

There are no similar production date limitations listed for the Model 3 and Model Y, but the warranty can only be purchased before your Basic Vehicle Limited Warranty expires, which is 4 years or 50,000 miles (80,000km). That means 2018 and some early 2019 Model 3 sedans are not eligible. Tesla also says there is no grace period for this and even if your Basic Vehicle Limited Warranty is one day expired, you won’t be able to purchase the ESA.

Here is a breakdown of the costs to purchase the ESA depending on your vehicle:

Agreement Period Vehicle Model Purchase Price (USD)
2 year or 25,000 miles
(whichever comes first)
Model S $3,100
Model X $3,500
Model 3 $1,800
Model Y $2,000

What does it cover?

As with all extended warranty programs it doesn’t cover everything that can go wrong with your car. Tesla’s ESA “covers the repair or replacement necessary to correct defects in the materials or workmanship of most parts manufactured or supplied by Tesla during the coverage period.” This does not include the high-voltage battery or the drive unit, which has its own standard 8 year warranty.

Tesla explains the ESA is not a Maintenance Plan, so don’t expect it to cover things like brake pad replacement and other wear and tear items.

What is the deductible?

Just like car insurance and other extended warranty program, Tesla’s ESA still has a deductible, but this amount is going to be much less than what you would have to pay out of pocket for repairs.

For Model 3 and Model Y the deductible is just $100 per visit. The deductible is only visible in the mobile app, and we have to yet to see any owners report how much the deductible is for the Model S and Model X, but it is likely $200.

How to purchase

To purchase the ESA simply open up your mobile app and go to the ‘Upgrades’ tab and select the ‘Extended Service Agreement’ option. Follow the prompts through to the purchase and your ESA will be added to your account. It is worth noting that if you purchase the ESA it does not take effect until after your Basic Vehicle Limited Warranty expires.

The big question is should you purchase the ESA. This comes down to personal preference and if you prefer the safety net of additional insurance that an extended warranty offers. If your vehicle has had several issues during its basic warranty, then it might be a good idea to purchase the ESA. Just two or three issues could cover the cost.

However since it doesn’t cover the most expensive items like the battery and drive unit, and the fact it only covers 2 years or 25,000 miles, many owners might decide to forgo the ESA and invest that money elsewhere.

Will you be purchasing the ESA? Let us know in the comments below.

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