More Than A Few Tesla Model S Owners Will Sleep Better Tonight!

More Than A Few Tesla Model S Owners Will Sleep Better Tonight!

In the wake of more than a few drivetrain exchanges being done on existing Tesla Model S sedans - most notably the 4th such warranty action that was needed on Edmunds' long-term car, Tesla has made the extraordinary step of expanding the warranty on the drive unit from 4 years/50,000 miles to 8 years or infinitely miles on the 85 kWh versions of the Model S.

Info Update: The 60 kWh Model S versions now have a 8 year/125,000 mile warranty. (thanks to Omar for passing along the 60 kWh data)

For Those Interest In The Upcoming Tesla Model X With AWD, This Is Likely Also Good News

For Those Interest In The Upcoming Tesla Model X With AWD, This Is Likely Also Good News

Which basically makes Edmunds suggestion to future/current Model S owners of “…if you’re set on buying one, or already have one and plan on keeping it for a while, (we) would HIGHLY recommend that  you buy the extended service plan for $4,000," fairly moot.

In fact, this drivetrain guarantee now matches the formidable battery warranty already in place; meaning that if you did shell out for the extended service plan...today's announcement might not make you feel quite as good about your purchase.

Tesla CEO Elon Musk made this statement today announcing the expanding coverage.

Infinite Mile Warranty By Elon Musk, CEO

The Tesla Model S drive unit warranty has been increased to match that of the battery pack. That means the 85 kWh Model S, our most popular model by far, now has an 8 year, infinite mile warranty on both the battery pack and drive unit. There is also no limit on the number of owners during the warranty period.

Moreover, the warranty extension will apply retroactively to all Model S vehicles ever produced. In hindsight, this should have been our policy from the beginning of the Model S program. If we truly believe that electric motors are fundamentally more reliable than gasoline engines, with far fewer moving parts and no oily residue or combustion byproducts to gum up the works, then our warranty policy should reflect that.

To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers. However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.

– Elon