The Tesla Extended Service Agreement stretches warranty coverage for up to 2 years or 25,000 miles.
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Brogan is a Motor1.com Senior Writer based in Central Oregon. He produces in-depth auto product guides on topics spanning from auto warranties and insurance to tips on how to sell a car.
Last Updated 09/16/2024Motor1 Reviews Team Take:
A Tesla has a highly sophisticated electric powertrain and a plethora of onboard technology. Advanced tech usually means expensive repairs when things fail, which can make a Tesla extended warranty a valuable investment.
Tesla extended warranties, called Extended Service Agreements, are available for all Tesla models. While third-party warranty options are available, not all companies cover luxury brands or electric vehicles. In our research of the best extended car warranty companies, we learned that the popular provider CarShield offers protection for Tesla models.
Editor’s Note: On July 31, 2024, the Federal Trade Commission announced that CarShield will pay $10 million to settle FTC charges that its advertisements and telemarketing for vehicle service contracts are deceptive and misleading, and that many purchasers found that repairs were not covered. In response, the Motor1 Reviews team reevaluated CarShield’s rating to better reflect its industry standing and transparency with consumers.
At Motor1.com, we’re dedicated to supplying car owners with the well-researched information they need to make sound decisions about auto warranties. Our editorial team consists of experienced automotive researchers, writers, and editors that follow strict guidelines to ensure that our articles are unbiased and fact checked.
To compile our product reviews and rankings, our team continuously evaluates dozens of warranty companies to compare plans, coverage, costs, customer service, and transparency. We verify each provider’s quality through our hands-on research process. More than 1,500 hours of research has gone into analyzing past customer reviews and mystery shopping top providers to gather pricing quotes for various plans. We’ve also surveyed 2,000 extended warranty customers to learn what matters most to consumers when purchasing a warranty. Lastly, to obtain first-hand product knowledge our team bought five warranty plans from separate providers to test the coverage levels and claims process of each company.
Recent changes have simplified the Tesla Extended Service Agreement (ESA). In the past, this long-term protection plan wasn’t available for either the Model 3 or Model Y. Now, the ESA is available for all Tesla models. There’s also only one set of terms for the Tesla ESA now: 2 years or 25,000 miles, whichever comes first.
The ESA covers many parts of the vehicle, but not the EV battery or Drive Unit, which are covered only by their original eight-year warranties. Coverage from Tesla’s Extended Service Agreements begins when the new-car limited warranty expires.
In addition to not extending the coverage of EV high-voltage batteries and drive units, Tesla extended warranty coverage does not include maintenance and wear items, including filters, liquids, and brake pads. Also not covered: suspension alignment and shock absorbers, tires, and upholstery wear and tear. The terms and conditions include a complete list of exclusions.
A Tesla extended warranty can cost between $1,800 and $3,500, depending on the extended service agreement you choose.
Here are the prices advertised on Tesla’s website for an extended warranty. All Tesla ESA plans feature a $100 deductible.
| Tesla Model | Extended Service Agreement Price |
|---|---|
| Model S | $3,100 |
| Model X | $3,500 |
| Model 3 | $1,800 |
| Model Y | $2,000 |
Our team launched a survey in January 2024 to better understand vehicle owners’ experiences with extended warranties from vehicle manufacturers. Out of 100 total respondents 15 were Tesla owners. This is what we found out about how much was spent on a Tesla extended warranty in total:
Various factors will help you decide whether a Tesla extended warranty is worth it, including existing coverage, vehicle reliability, maintenance costs, and the quality of the extended warranty.
When considering the long-term investment you make when purchasing a vehicle, it’s essential to consider all scenarios to protect your investment. To help you determine whether or not a Tesla extended warranty is right for you, we look at each of these factors in detail in the sections below.
When considering extended auto warranty coverage, first be aware of what is covered by the Tesla warranty. If you plan to sell your vehicle before the factory warranty expires, there is no reason to purchase a Tesla extended warranty.
Tesla wins a lot of admiration for its engineering and technology, but only certain parts of the warranty stand out as above average among luxury brands.
Tesla considers the lithium-ion high-voltage battery to be functioning properly if it retains at least 70 percent of its rated capacity. Other EV makers have a similar policy. Because a battery’s capacity does decline over time, this is considered normal wear.
The Tesla warranty is transferable if you sell the vehicle to a private party “when a vehicle ownership transfer is performed through Tesla,” according to the company.
Exclusions to the Tesla warranty are similar to those of other carmakers’ warranties (abuse, negligence, racing, damage from towing, etc.), but there is one that stands out. The warranty can be voided if the owner fails to install vehicle software updates after receiving a notification that an update is available.
That one is critical because Tesla releases over-the-air software updates regularly that affect the vehicle’s performance, including power and braking. Don’t ignore Tesla’s update notifications the way you might disregard software updates from your computer or smartphone.
When you get a repair covered by your Tesla warranty, the parts used are covered by their own 12-month warranty. Specific parts of the vehicle have different, longer coverage terms:
Unlike most auto brands, Tesla does not use the term “certified pre-owned” for its used cars. However, every used Tesla must pass a 102-point inspection before it can be sold at a Tesla dealership.
The warranty coverage you get with a used Tesla is pretty straightforward. Your used Tesla is covered by the remainder of its 4 year/50,000-mile Basic Vehicle Limited Warranty. Once that original factory warranty coverage expires, you’ll get additional coverage for 1 year/10,000 miles.
If the factory warranty has already expired when you purchase a used Tesla, you’ll get that same 1-year/10,000-mile coverage starting on your delivery date.
Another factor to consider before purchasing an extended warranty is vehicle reliability. Tesla is one of the most scrutinized carmakers, and it made the news in previous years when its efforts to ramp up production to meet the demand for the Model 3 resulted in some quality glitches.
The J.D. Power 2024 U.S. Vehicle Dependability Study℠ found that Tesla vehicles experience 252 problems per 100 cars. That’s quite a bit higher than the average number of 190 across all automakers. Tesla was not eligible for formal ranking because it did not meet study criteria.
According to Consumer Reports, many Tesla problems involved body hardware issues, such as trunks not closing or loose body trim panels. Similar problems, along with paint issues, affected the more expensive Model S.
According to RepairPal, the average annual repair cost of a Tesla vehicle is $832. This is significantly higher than the average across all auto brands, which is $652. Keep in mind that repair costs will vary depending on model, mileage, and location.
You can research repairs and owners’ experiences with reliability on the Tesla website owners’ forum. While anyone can view the forums, only registered Tesla owners can post. It is somewhat brave for a carmaker to host such an open forum, where owners can air their complaints and seek advice from others.
For example, when some Model S owners experienced problems with the electric drive unit, Tesla simply replaced it as an expedient repair, and sometimes more than once for some individual owners.
Purchasing an extended service agreement from Tesla for your Model S or Model X isn’t your only option. In fact, third-party warranty companies tend to be more flexible and offer drivers more coverage options.
However, Tesla is a young company, and most of its models on the road are also young. This means that aftermarket warranty companies may not necessarily offer the coverage you’d get for a mainstream brand’s vehicle. You will need to contact third-party warranty companies to verify if they cover any Tesla models.
After we analyzed and compared coverage for Tesla models, we believe some third-party companies like CarShield offer better extended warranties for Tesla owners on paper. However, CarShield has recently faced charges from the FTC for deceptive and misleading advertising for its extended warranties. Third-party companies provide more customizable plans to fit your budget while offering protection to help ensure your peace of mind. CarShield earned our award for being the Best for Electric Vehicles due to its coverage options and cost for EVs. Since the FTC charges, however, we have re-evaluated the company and its overall score, which went from a healthy 4.5 down to a 3.9 out of 5.0.
| Tesla Extended Warranty | CarShield | |
|---|---|---|
| Start Date | Upon expiration of factory warranty | Anytime |
| Max Length of Coverage | 2 years/25,000 miles | 10 years/300,000 miles |
| # of Plan Options | 1 | 8 |
| Transferable | Yes | Yes |
| Deductible | $100 | $0. $50, $100, $200 |
| Trip Interruption | No | Yes |
| Roadside Assistance | Yes | Yes |
| Repair Network | Tesla dealers only | Repair facilities certified by the National Institute for Automotive Service Excellence (ASE ® ) |
| Cancellation Policy | Anytime | Refund if within 30 days |
| Availability | From local dealer | Free, instant quote |
When we polled 1,000 extended warranty consumers in our 2023 survey, CarShield was far ahead of other independent warranty companies as the most popular provider on the market. Our team frequently gathers quotes from CarShield for various makes and models and found that CarShield warranties cost between $109.99 and $149.99 per month on average. However, you may pay more for electric vehicle coverage. Note, due to charges from the FTC we recommend gathering quotes from more than just CarShield.
In this article, we analyzed Tesla’s extended warranty and compared its cost and coverage against a leading third-party vehicle service contract company. Our research shows buying an extended warranty for your Tesla vehicle saves you money in the long run and gives you peace of mind. We recommend getting quotes from third-party warranty companies so you can compare coverage options and plan prices.
As long as you buy your Tesla from a private party and make the transfer through Tesla, and as long as the vehicle is still within its original New Vehicle Limited Warranty, you can buy an Extended Service Agreement. Used Teslas purchased from a third-party dealership are not eligible.
You must buy a Tesla ESA before the Basic Vehicle Limited Warranty expires. There is no grace period after this original factory warranty coverage runs out.
Yes, when you process the vehicle’s transfer of ownership to a new buyer through Tesla, any remaining portion of the Extended Service Agreement stays with it.
No. Whether you finance your Tesla Model S or Model X or pay cash, the Extended Service Agreement is a separate purchase and cannot be added to the cost of the car.
Tesla says you “can request to cancel your Extended Service Agreement at any time and receive a prorated refund, based on your claims history.” This means any previous warranty claims paid will be subtracted from the prorated amount. You could possibly get zero back, voiding any financial benefit to canceling it. It pays to ask Tesla customer service before you cancel.
*Data accurate at time of publication.
Brogan is a Motor1.com Senior Writer based in Central Oregon. He produces in-depth auto product guides on topics spanning from auto warranties and insurance to tips on how to sell a car.
