Tesla Extended Warranty Review

February 4, 2021

Tesla has been steadily taking the automobile world by storm over the past few years. While there’s a lot to be excited about, manufacturer’s defects can still occur in Tesla cars. That’s why we always suggest covering your purchase with an extended warranty. But should you buy the one from Tesla? Find out more in our Tesla extended warranty review.

Today, we’re going to take a look at Tesla’s extended warranty. We’ll go over their plans, discuss what’s covered, and make our ultimate recommendation.

The Highlights:

  • Tesla has a minimal vehicle service contract, with only two plans available for two of its cars.
  • Prices for their warranties are displayed plainly on their website, which is highly unusual.
  • We recommend the Tesla extended warranty strictly so that you can have Tesla-trained technicians working on your car.

Is It Worth Getting a Tesla Extended Warranty?

We cannot discuss if the Tesla extended warranty is worth getting without first examining what’s included in the warranty.

Tesla only offers their extended warranties — which they simply call an Extended Service Agreement — on the Model S and Model X. Other models do not have an available vehicle service contract.

Coverage for a Tesla extended warranty begins when the New Vehicle Limited Warranty expires. As such, you have two options for warranties. The only differentiator is the length of time and mileage that it extends your warranty:

  • Two years or 25,000 miles, whichever comes first
  • Four years or 50,000 miles, whichever comes first

Tesla does not provide a list of components that are covered or even a brief overview. They only say that the lithium-ion battery and drive unit are not covered, but leave it at that. Their website refers you to a Tesla Service Center or dealership for component coverage information.

In order for an issue to be covered, it must stem from defects in the materials or workmanship on the part in question. There is no coverage for wear and tear or issues related to neglect, misuse, or abuse. Any items that are “consumable” and related to regular maintenance are not covered.

Usually, we wouldn’t be able to cover costs in our Tesla extended warranty review. We’d tell you that prices for extended warranties are based on your VIN and mileage, so you need to request a quote to determine your price. However, Tesla breaks the mold by listing the prices of their warranties for each vehicle and time period, which are:

Model S

  • Two-Year Extended Service Agreement:  $2,100 if purchased within 180 days; otherwise, it’s $2,600
  • Four-Year Extended Service Agreement:  $4,250 if purchased within 180 days; otherwise, it’s $4,750

Model X

  • Two-Year Extended Service Agreement:  $2,400 if purchased within 180 days; otherwise, it’s $2,900
  • Four-Year Extended Service Agreement:  $4,800 if purchased within 180 days; otherwise, it’s $5,300

Keep in mind that these prices are current as of this writing and may change in the future. Refer to Tesla’s extended service agreement page to see current prices.

Any Tesla that is still under the New Vehicle Limited Warranty is eligible for a Tesla vehicle service contract. Warranties must be purchased by the owner at the nearest Tesla Service Center. Extended warranties must be purchased no later than 30 days or 1,000 miles past the expiration of the New Vehicle Limited Warranty.

Tesla states that there is a deductible, but doesn’t discuss how much it is. You’ll have to ask a sales specialist about this.

Warranties are fully transferable to a new owner. No fee is disclosed.

Do we think it’s worth getting a Tesla extended warranty? We are neutral towards their warranty. We would suggest obtaining quotes from other providers and comparing coverage and costs. There is nothing about the Tesla extended warranty program that’s special or unique, other than flat-rate pricing that they list on their website.

Tesla Factory Extended Warranty vs. Third-Party Extended Warranty

You don’t have many options when it comes to third-party extended warranties. CarShield provides a third-party warranty option, although you’ll need to request a quote to see coverage and cost. A lesser-known company called Xcelerate also offers an extended warranty that caters to electric vehicles.

With either of the above third-party options, you’ll be able to take your Tesla to any auto shop that is certified by ASE or AAA. Of course, due to the complexities of Tesla cars, you should call ahead and ask if they’ll even work on them.

You’ll be restricted to Tesla Service Centers to perform your repairs with a Tesla extended warranty. While this can be seen as a downside, considering how different and complex Tesla cars are, it might not be such a bad thing. All repairs will be done by Tesla-trained technicians and use genuine Tesla parts.

If you’re far from a Tesla Service Center, you might want to look into a third-party extended warranty. However, if you’re somewhat close, it’s probably worth sticking with the Tesla extended protection program.

What is Covered Under a Pre-Owned Tesla Extended Warranty?

Tesla does not have a certified pre-owned program. They simply refer to the cars they sell with prior owners as “used.” All used cars sold directly by Tesla come with a Used Vehicle Limited Warranty, which will provide some coverage. Tesla does not clearly state that their used inventory is eligible for Tesla’s extended protection plans. It’s possible that they qualify for the “over 180 days” price.

Do We Recommend a Tesla Vehicle Service Contract?

What’s our ultimate call from the Tesla extended warranty review? We do recommend a Tesla vehicle service contract. However, our recommendation is not because they have an amazing program or a great price. Instead, we recommend them because you should always have your Tesla worked on by a trained mechanic who is using genuine Tesla parts. Otherwise, you could end up shortening the life of your vehicle.

If you’re looking for another option, we work with a third-party vendor of vehicle service contracts that offers fair pricing and clear coverage. We’ll even hop on the phone with you and help you compare different warranties, even if you don’t select our option. Reach out to us today to obtain a quote for your car.

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