Key Takeaways
- Tesla has launched a new subscription service called the Extended Service Agreement (ESA) for out-of-warranty repairs on the Model X, Model S, Model 3, and Model Y.
- The ESA for the Model Y costs $60 per month and can extend coverage for an additional four years or 100,000 miles after the initial warranty ends.
- Monthly fees for the ESA vary by model: $50 for the Model 3, $125 for the Model S, and $150 for the Model X.
- Each ESA repair visit includes a $100 deductible and does not cover consumables or bodywork related to accidents and wear and tear.
- The ESA subscription is not available for leased vehicles, but Tesla will offer an option for customers to enroll if they choose to buy their leased vehicle later this year.
Tesla has introduced a new subscription service for post-warranty repairs on its Model X, Model S, Model 3, and Model Y for the first time.
New Service Details
The new Extended Service Agreement (ESA) will provide coverage for out-of-warranty repairs on the Model Y at a rate of $60 per month once the initial warranty of four years or 50,000 miles is up. Before this, the extended warranty for the Model Y was limited to an additional 24 months or 75,000 miles total; however, with the ESA subscription, it can now extend for another four years or 100,000 miles, making the warranty period align with that of the battery and drivetrain.
Warranty Insights
Tesla vehicles have always come with an 8-year warranty for the battery and drive units, covering either 100,000 or 120,000 miles, based on the model. Now, the ESA can extend this coverage to the entire vehicle. The cost for the Extended Service Agreement for the Model 3 is $50 per month, while the Model S will be priced at $125. The highest monthly fee for out-of-warranty repairs falls on the Model X, costing $150 per month.
Important Considerations
Each ESA repair visit has a deductible of $100 and does not include consumables like the 12V battery or any bodywork related to accidents, modifications, and usual wear and tear. However, Tesla does cover repairs or replacements that are necessary to fix failures of most parts made or supplied by the company. Customers will begin to receive offers to join the new ESA subscription service in the final three months of their standard 48-month warranty.
The subscription for out-of-warranty repairs is not available for leased vehicles; however, later this year, Tesla plans to give those who want to buy their leased vehicle an option to sign up for the new ESA service.
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