Guide to Tesla’s Updated Extended Service Agreement Warranty

Tesla is offering a more comprehensive Extended Service Agreement program, once again covering new vehicles with an extended warranty.

What Is It?

Tesla’s Extended Service Agreement essentially extends the Basic Vehicle Limited Warranty by a period of an additional two years or 25,000 miles — whichever is reached first.

It covers the repair or replacement of most parts, with the exception of the lithium-ion battery and powertrain. Battery and drive unit components are already covered under their own respective warranty of eight years and between 100,000-150,000 miles based on the vehicle and configuration.

A two-year/25,000 mile extension follows the initial Basic Vehicle Limited Warranty period of four years or 50,000 miles, with an Extended Service Agreement taking over for a total of six years or 75,000 miles.

Note that an Extended Service Agreement does not include maintenance, or account for wear-and-tear.

Which Vehicles Qualify?

Vehicles must be within their initial Basic Vehicle Limited Warranty period to add an Extended Service Agreement, with no exceptions.

This qualifies, per Tesla:

Tesla is offering an Extended Service Agreement for any model year of Model 3 or Model Y, but effectively only covers certain model years of the Model S and Model X at this time — surprisingly, including older vehicles.

What Is the Pricing?

As of March 2023, pricing is as follows:

How Do I Add an Extended Service Agreement?

New Tesla owners of qualifying vehicles can find the option to purchase an Extended Service Agreement under the Upgrades tab in their Tesla app.

The Extended Service Agreement will become effective immediately after the Basic Vehicle Limited Warranty expires.

Note that it’s not possible to purchase or finance an Extended Service Agreement prior to taking delivery of a new vehicle.

Is An Extended Service Agreement Transferable?

Yes, the Extended Service Agreement will stick with the vehicle throughout the applicable warranty period and is transferable to subsequent owners.

Owners can however cancel the Extended Service Agreement and request a full refund prior to the start of the coverage period.

Can I Add an Extended Service Agreement to a Used Tesla?

Unfortunately, Tesla does not provide the option to add an Extended Service Agreement to a used Tesla that doesn’t already have one.

Only new Tesla owners will have the option via their Tesla app.

It’s also not possible to add multiple Extended Service Agreements to one vehicle.

Is It Worth Adding an Extended Service Agreement?

This will come down to an owner-by-owner basis.

The good news is that owners can add it at any time prior to the expiration of the Basic Vehicle Limited Warranty that comes with their vehicle, which should make for a good gauge of how often or infrequently it requires repairs.

At the same time, some owners may prefer to add it for peace-of-mind.

In our anecdotal opinion, Tesla’s vehicles are becoming increasingly reliable and repairs for owners that do need them are usually relatively minor.

Thus, it may be more of a consideration for a more complex vehicle like a Model S or Model X even if the difference in price is already factored into the Extended Service Agreement.

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