Tesla Launches New Monthly Extended Service Agreement With Longer Coverage

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Tesla has introduced a new, more flexible and affordable way for owners to get peace of mind after their factory warranty ends. This new service is a monthly subscription that replaces the previous Extended Service Agreement (ESA) in the United States.

The new subscription model makes it more appealing to owners, as it avoids a large upfront payment. This new subscription also offers better coverage terms than before.

Longer Coverage, Better Flexibility

The biggest upgrade in this new format of the ESA is the length of the coverage. The old prepaid ESA was limited to just two years or 25,000 miles beyond the factory warranty, for a total of up to 75,000 miles.

The new monthly program doubles the potential coverage period, offering protection for up to four additional years beyond the factory warranty, or until the vehicle reaches 100,000 miles, whichever comes first. Coming from a basic vehicle warranty of 4 years or 50,000 miles, this is a huge jump up in customer protection.

Pricing & Deductible

The monthly price is simple, but it varies depending on the model. The Model 3 is the most affordable at just $50 per month, while the Model X is the most expensive at $150 per month.

• Model 3: $50 / month

• Model Y: $60 / month

• Model S: $125 / month

• Model X: $150 / month

However, Tesla will also charge a $100 deductible for each service visit that covers an included repair, on top of the monthly subscription fee.

Exclusions

The ESA is an exclusionary warranty, meaning it covers the repair or replacement needed to correct a failure of most parts manufactured or supplied by Tesla. However, there are some parts not covered under the ESA, which include:

• High Voltage Battery

• Drive Unit

• 12V/16V Low Voltage Battery

• Bodywork

• Paint

• Glass

• Charging Equipment

• Wear & Tear Items (cabin air filters, brake pads, tires, etc.)

• Issues arising from accidents, modifications, or environmental damage

Essentially, the ESA is designed to cover the components other than the drivetrain. That includes the touchscreen, computers, heat pumps, suspension, or other non-drivetrain electronics that aren’t covered after the 4-year basic warranty.

Tesla vehicles come with an extensive battery and drivetrain warranty that covers these items for up to 8 years. The maximum mileage varies by model. RWD Model 3 and Model Ys are covered for the first 100k miles, while Long Range Model 3s and Ys are covered up to 120k miles. The Model S and Model X are covered for up to 150,000 miles or 8 years.

Eligibility and Sign-Up

Eligibility for the new ESA subscription is pretty clear-cut.

Your vehicle must be within its 4-year / 50,000-mile Basic Vehicle Limited Warranty. Tesla will send customers whose basic warranty is about to expire a notification approximately 3 months before the time-based expiry.

The subscription is not available for leased vehicles or vehicles that were purchased used. Tesla plans to offer eligibility to customers who purchase their vehicle at the end of a lease by the end of 2025, and for used vehicle customers in the near future.

The Cybertruck, due to its relatively newness to the market, doesn’t have access to the ESA quite yet - but it will be coming “in the near future.” For Canada and Mexico in particular, the ESA is not yet available, but Tesla has confirmed plans to bring this subscription to other regions soon.

Subscribing is done through the Tesla App. Tap Upgrades > Service Plans > Extended Service Agreement. Once you review the terms and the monthly fee, you can then hit Subscribe and confirm your payment information.

If the ESA is not visible, your vehicle is not eligible for the subscription.

Payments for the ESA only begin once your original warranty has expired. However, you can sign up at any time, and payments will automatically start when your factory warranty expires.

Other Service Plans

Tesla also offers a Windshield Protection Plan and a Wheel and Tire Protection Plan, if you didn’t already know. Both of these plans are subscription-based and are currently only available in the United States. However, Tesla has indicated that it plans to expand to other regions in the near future.

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Tesla Issues Physical Recall for Some Model 3 & Model Y Vehicles Over Seat Fasteners

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Tesla has issued a new, voluntary safety recall for a small batch of Model 3 and Model Y vehicles due to an issue with improperly tightened fasteners in the first-row seats. 

The recall impacts only about 48 vehicles and will require a Tesla service visit to resolve. 

Improperly Tightened Fasteners

According to the recall notice, the issue stems from the first-row seating that may have been manufactured with improperly torqued fasteners that attach the seat back to the seat bottom. In some cases, the fasteners may be loose or missing, which could cause a rattle or the seat to detach.

This is a critical safety issue, as a seat back that is not properly anchored could detach, leaving the driver or passenger unsupported and increasing the risk of an accident.

According to Tesla’s investigation, this issue originated from a production change made for vehicles manufactured between April 3rd and May 7th of 2025. However, not all vehicles built within that date are impacted by the recall. The issue impacts 30 2026 Model Ys and 18 2025 Model 3s, across all variants, including RWD, AWD, and Performance (for the Model 3).

Thankfully, there have been no incidents related to this issue to date.

The Fix

Since this is a physical recall, Tesla will have to inspect impacted vehicles and replace and properly retorque the seat fasteners as needed, free of charge. 

Owners of vehicles who have been impacted have already been contacted under the voluntary recall, and most vehicles should have been repaired by the time this notice is formally issued.

You can also check if your VIN is impacted by a recall using Tesla’s Recall Tool.

Tesla has noted the repair should take approximately one hour of work at a Service Center, and up to two hours if a Mobile Ranger addresses the recall.

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Tesla Robotaxi Sends Out More Invites: Next Phases of Robotaxi

@TerrapinTerpene

Following the successful launch of Robotaxi on Sunday, June 22nd, Tesla has begun moving to the next phase of its Robotaxi rollout. They have finally begun sending out a second, larger wave of invites, expanding the early access program to more members of the Tesla community across the United States.

This has moved them past the initial 20 or so users that were offered access on Sunday. That also means Tesla is on the hunt for something crucial: more real-world data.

More Riders ASAP

The initial launch was a tightly controlled event, with access granted to a small and curated group of influencers. While this approach was ideal for generating initial buzz for the launch and collecting feedback from high-quality testers, it also presented logistical challenges.

With only a handful of authorized riders and vehicles, the demand for rides would inevitably dry up as influencers begin their journeys back home. Without a public release, that would leave Tesla’s Robotaxi fleet idle, unable to gather additional data.

To rapidly improve on Robotaxi’s FSD, Tesla needs its vehicles to be constantly navigating real-world scenarios, encountering edge cases, and logging miles. The second round of invites is needed to keep Robotaxis learning and on the road.

Austin Users Next?

This new wave of invites isn’t an open door for members of the public quite yet. By continuing to send invites to trusted community members, Tesla is executing a slow and deliberate rollout by inviting members who know and love Tesla. This allows them to scale the program gradually, increasing the number of users and the diversity of ride requests without overwhelming the relatively small initial fleet of about 10 cars.

Future phases will likely involve opening access to Tesla owners within Austin, which would open up a regular flow of rides. Once that’s done, Robotaxi will likely open up to the public.

Sign of Confidence

The expansion of the early access program is a sign that Tesla is happy and confident with the rollout so far. While Tesla can gather plenty of data around Austin from Tesla owners using FSD, they also need to continue testing features that are exclusive to the Robotaxi, such as the Robotaxi app, support, and remotely control the vehicles when needed.

We expect a full launch to potentially still be months out, but this methodical expansion will likely see more users gradually gain access to the Robotaxi network in the coming weeks.

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