Tesla Launches New Extended Warranty Option for Some Vehicles

By Kevin Armstrong
Tesla now offers an extended warranty in some regions
Tesla now offers an extended warranty in some regions
Not a Tesla App

Tesla has begun offering an extended warranty called Extended Service Agreement (ESA) in the U.S. The service provides further coverage for eligible vehicles following an accidental leak last year on their mobile app.

You may recall Tesla unintentionally revealed a new extended warranties program when version 4.11.0 of the mobile app went live in July 2022. A new item appeared in the Upgrades section titled Tesla ESA, priced at $7,700.

The description was unclear, with several grammatical errors, spelling mistakes, and poor formatting, suggesting that it was not ready for public consumption. It was unknown whether the ESA was being prepared for all models or if the price was a placeholder.

Fast forward to today, Tesla's Vehicle Extended Service Agreement (Vehicle ESA) is now officially available for eligible Model S, Model X, Model 3, and Model Y owners. The Vehicle ESA commences when the Basic Vehicle Limited Warranty expires and ends upon reaching the selected time or mileage threshold, whichever comes first.

Eligibility and Coverage

To be eligible, the new vehicle must be purchased directly from Tesla, and the Vehicle ESA must be purchased no later than when the Basic Vehicle Limited Warranty expires.

Pricing

The pricing for the Vehicle Extended Service Agreement (in USD) is:

Model S (2 years or 25,000 miles, whichever occurs first): $3,100.00

Model X (2 years or 25,000 miles, whichever occurs first): $3,500.00

Model 3 (2 years or 25,000 miles, whichever occurs first): $1,800.00

Model Y (2 years or 25,000 miles, whichever occurs first): $2,000.00

These prices are notably lower than the previously leaked $7,700 price tag. The Vehicle ESA purchase price does not include applicable state and local taxes.

The new ESA covers Model S built between 2012 and 2020, and Model X built between 2015 and 2020. There are no similar production date limitations for Model 3 and Model Y.

Unfortunately, there is no grace period. The ESA must be purchased before the Basic Vehicle Limited Warranty expires (4 years or 50,000 miles). This means 2018 and some early 2019 Model 3 sedans are not eligible.

Exclusions and Deductible

The 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. However, it does not include the high-voltage battery or drive unit, which have their own standard 8-year warranty.

Tesla clarifies that the ESA is not a Maintenance Plan and will not cover wear and tear items like brake pad replacements.

The deductible for Model 3 and Model Y is $100 per visit, and it's believed it will be $200 for Model S and Model X.

How to Get ESA

To purchase the ESA, open the Tesla mobile app, go to the 'Upgrades' tab, and select the 'Extended Service Agreement' option. Follow the prompts to complete the purchase, and the ESA will be added to your account. It's important to note that the ESA only takes effect after your Basic Vehicle Limited Warranty expires. It can be transferred to the next owner, which the company says can improve aftermarket value.

Tesla's Vehicle Extended Service Agreement has evolved from last year's accidental leak to its current official offering. This additional protection aims to provide greater peace of mind and an improved ownership experience for Tesla customers.

Tesla Reveals Robotaxi App and Names the Robotaxi the CyberCab

By Cláudio Afonso

Tesla has invested billions of dollars over the years toward vehicle autonomy. The mission continues as Elon Musk and Tesla now prepare to unveil their ride-hailing product, Robotaxi this August. Or, as Musk called it on Tuesday, Tesla CyberCab.

Early Days

Five years ago, during Tesla’s Autonomy Investor Day in April 2019, Elon Musk said he felt “very confident predicting autonomous robotaxis for Tesla in the following year [2020]”. At the time, Musk added a bolder claim, predicting that Tesla wouldn’t even make cars with steering wheels or pedals by 2022. While timeliness may not be Musk’s strong suit, he has a track record for getting things done that others were unwilling to try or thought were impossible. Musk later admitted he can be overly optimistic and said “sometimes I am not on time, but I get it done.” 

Now, 5 years later, we have the robotaxi unveiling scheduled for August 8th. After the release of FSD v12, it’s clear that we’re much closer to autonomy than we were in 2019, although FSD v12 is still a far cry from full autonomy.

While Tesla still has the robotaxi unveiling scheduled for August, Tesla announced yesterday that it’d be prioritizing a simpler “next-gen” model that could be released by early 2025.

Latest Updates

On the conference call, Musk added that Tesla now has over 300 million miles driven with FSD v12 since it was launched just last month. He added that it's becoming “very clear that the vision-based approach with end-to-end neural networks is the right solution for scalable autonomy”.

Tesla said it has been investing in the hardware and software ecosystems necessary to achieve vehicle autonomy and a ride-hailing service. The company is confident that it can establish a scalable and profitable autonomous driving business by employing a vision-only architecture.

think of it [Tesla] as combination of Airbnb and Uber meaning that there will be some number of cars that Tesla owns itself and operates

Tesla = Uber + AirBnb

Later on, Elon Musk unveiled that the new service will operate and result in a mix between Uber and Airbnb where the Tesla driver decides if and when he wants his Tesla to be used and by whom. Tesla stated:

“We believe the Tesla software experience is best-in-class across all our products, and plan to seamlessly layer ride-hailing into the Tesla App.”

Tesla’s CEO clarified that the owners will be able to add or remove their car from the fleet “whenever they want” adding that it will be up to them to decide if they want to only let the car be used “by friends and family or only by five-star users or by anyone at any time”. The flexible program will, just like Airbnb, allow the owners to take the car out of the market when they want.

The upcoming ride-hailing service will enable users to easily request a Tesla vehicle, control the car's temperature, monitor its real-time location, and adjust the audio system. The only question is when.

Musk Teases New Model for Early 2025 That Will Use a Mix of Next-Gen and Current Platforms

By Cláudio Afonso

“We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025”. This was one of the key sentences that were part of Tesla’s deck shared on Tuesday directly before its financial results.

Since Reuters’ report a few weeks ago saying Tesla had “scrapped” the highly expected cheaper model— which Elon quickly denied on X —retail and institutional shareholders started asking for more details on Tesla’s product roadmap for 2024 and beyond.

In the earnings conference call, Elon Musk reiterated that Tesla expects to launch the next model in “early 2025, if not late this year”.

“We've updated our future vehicle lineup to accelerate the launch of new models ahead of previously mentioned start of production in the second half of 2025. So, we expect it to be more like the early 2025, if not late this year. “

Over concerns of temporary production halts to update the factories for these new models, Musk said that Tesla will produce new models with certain aspects from their next-generation platform and current models. This will reduce the number of changes needed on production lines and allow Tesla not only to ramp up production faster but also to get the vehicles to market quicker.

Model Y Redesign

Tesla appears to hit that their next-gen vehicle will be less “next-gen” than they were initially aiming for, but to get a new vehicle out the door by late 2024, the process would already have to be in motion. Tesla may likely be referring to the redesigned Model Y, which is expected to reuse many parts from the new Model 3. Earlier this year, Tesla said that the redesigned Model Y will not be released this year, so it makes sense that they’re looking to speed up that production.

Tesla CEO concluded by saying that these measures will allow Tesla to reach a capacity of over 3 million units. Tesla produced 1.84 million vehicles in 2023. However, this year they’re ramping up Cybertruck production and introduced the new Model 3 into new markets.

And we think this should allow us to get to over 3 million vehicles of capacity when realized to the full extent.

Tesla reported on Tuesday its earnings results followed by a conference call where it teased its upcoming Robotaxi and its next-generation platform saying its “purpose-built Robotaxi product will continue to pursue a revolutionary ‘unboxed’ manufacturing strategy”.

Earlier in the day, Tesla announced the new Performance variant of its sedan Model 3 with deliveries in the United States starting already next month. The new version starts at $45,490 (after applying the $7,500 Federal EV tax credit) and goes from 0 to 60mph in 2.9 seconds.

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