Tesla Extended Warranty Worth It

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. Let’s discover that tesla extended warranty worth it or not?

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.

Tesla Extended Warranty Worth It

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.

How to Buy a Tesla Extended Warranty

Tesla Extended Warranty Worth It

You can purchase an ESA plan only through the Tesla app. The option to purchase is under the “Upgrades” tab.

Importantly, you have a limited window of when you can purchase coverage. You can only add extended warranty coverage for your Tesla up to 30 days/1,000 miles after your original New Vehicle Limited Warranty expires. Past the 30-day/1,000-mile point, you’ll no longer be eligible for the official Tesla ESA plan.

How Much Does a Tesla Extended Warranty Cost?

How much a Tesla ESA costs depends on when you purchase it. The company has separate warranty prices for owners that purchase a plan either before or after 180 days from the delivery of their vehicle. The table below shows the difference in cost.

Tesla ModelExtended WarrantyTerm LimitPurchased Within 180 Daysof In-Service DatePurchased After 180 Daysfrom In-Service Date
Model S2 years or 25,000 miles$2,100$2,600
Model S4 years or 50,000 miles$4,250$4,750
Model X2 years or 25,000 miles$2,400$2,900
Model X4 years or 50,000 miles$4,800$5,300

What’s Not Included in the Tesla Extended Warranty

Like any service agreement, the Tesla extended warranty comes with certain exclusions. Here are a few examples of items and causes of damage that are not covered under Tesla’s warranty:

  • Tires and wheels
  • Theft or vandalism
  • Abuse or negligence
  • Lithium-ion battery and drive unit
  • Accidents or collisions
  • Racing or competitions
  • Commercial vehicle use
  • Environmental damages
  • Corrosion or paint defects
  • Modified or non-Tesla parts
  • Lack of proper maintenance
  • Vehicles with altered odometers
  • Wear-and-tear items like brake pads
  • Routine maintenance services like oil changes
  • Repairs performed by non-authorized mechanics
  • It’s important to note that you’ll need to take your vehicle into an Authorized Tesla Service Center for any covered repairs to comply with the Tesla extended warranty.

What Coverage Do You Already Have?

It’s possible that you already have coverage on your vehicle. The company packages a factory warranty with every new vehicle and a certified pre-owned (CPO) warranty on some used Teslas.

Tesla Factory Warranty

All new Teslas are covered by a 4-year/50,000-mile New Vehicle Limited Warranty, which provides high-level, bumper-to-bumper coverage. This plan covers most parts, aside from components like normal wear-and-tear items. 

Model S and Model X: 8 years or 150,000 miles

Model 3 and Model Y Long Range or Performance: 8 years or 120,000 miles

Model 3 and Model Y Standard or Standard Range Plus: 8 years or 100,000 miles

Tesla CPO Warranty

Tesla offers a CPO warranty for some used models bought from an official dealership. However, the CPO warranty is only available for Model S or Model X vehicles. In addition, cars must be under 4 years old and have fewer than 50,000 miles on the odometer. 

These cars are protected by a Used Vehicle Limited Warranty for 4 years or 50,000 miles from the date your vehicle is delivered to you. Tesla CPO coverage mimics that of the New Vehicle Limited Warranty. However, Tesla excludes the Battery and Drive Unit Warranty from CPO protection plans.

Independent Tesla Extended Warranty Advantages

Tesla Extended Warranty Worth It

Extended warranty plans from independent providers don’t have the branding of the Tesla ESA, but they do have some key advantages over the manufacturer’s extended coverage. These include:

  • More repair shop options: The Tesla ESA requires you to take your vehicle to an official dealership for repair work, of which there are only 160 in the country. Independent providers, on the other hand, allow you to use your coverage at any of more than 1,500 repair centers with ASE-certified technicians.
  • Multiple plan options: While the ESA has just one coverage plan, third-party providers tend to offer multiple levels of coverage. This allows you to pay for coverage you want and skip coverage you don’t.
  • Wider purchase window: You have to purchase an ESA within a specific window close to when you first got your Tesla. But with independent service plan providers, you can purchase coverage at almost any time.
  • More purchase options: If you want to buy an ESA plan, you have to buy it from the dealership or through the Tesla app. By contrast, you can purchase an independent coverage plan online from any device or over the phone.
  • Coverage for more vehicles: Tesla only offers ESA coverage for Model S and Model X vehicles. However, third-party providers will cover other Tesla models, such as the Model 3 and Model Y.
  • More term length options: In addition to multiple levels of coverage, independent providers also give you options on the length of your extended warranty plan. That means you can purchase just a one-year warranty if you want or extend your coverage for multiple years into the future.

Frequently Asked Questions

How long do Tesla batteries last?

Batteries can last for hundreds of thousands of miles, but they do eventually lose their full charge capacity and return less range over time.

Do Teslas cost a lot to repair?

RepairPal found that Tesla owners pay an average of $832 to repair their vehicles. That’s a few hundred dollars more than average brands.

How much do Tesla battery replacements cost?

A Tesla battery replacement can cost between $20,000 and $35,000, but that cost could climb if the vehicle needs towing, has other issues, or has a non-covered failure.

Conclusion

The official Tesla extended warranty, known as the ESA, is a reasonably good value considering the price of the plan, the likelihood of needing repairs, and the cost of repairs. However, its availability is severely limited. You can only purchase an ESA plan for two Tesla models, and you must purchase it within a relatively small window of time.

If you want extended coverage for your Tesla, our research team encourages you to consider third-party options. An extended warranty from an independent provider gives you much more flexibility and many more options on how much coverage you have and how long you have it.

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