Why Has Tesla Halved New Car Warranty Periods in Australia?

Could this be related to the paint problems presented by the Model 3?

Tesla Model 3 RHD

Gustavo Henrique Ruffo

By: Gustavo Henrique Ruffo

Aug 15, 2019 at 11:25am ET

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When it relates to warranty, automakers normally increase it as a sign that they trust their products. And in an attempt to make clients have the same confidence in them. But what about manufacturers that halve it? This is what Tesla has decided to do with all its new cars in Australia from February 1st, 2019 on, according to CarGuide.com.au.

The Australian website has reached out for Tesla in search for an explanation but got no reply so far. We bet that the answer, when and if it comes, will state there is no need for a long warranty because of the quality of the products, etc. But two reasons come to our minds.

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The first one has to do with demand. If you have people waiting in line for your product, you do not have to make it any more attractive than it already is. You may even benefit from measures that hold up the demand, such as increasing prices. Or, in this case, halving the warranty from eight years and 160,000 km (99,400 mi) to four years or 80,000 km (49,700 mi). Battery pack and powertrain warranties for new cars remain at eight years and 160,000 km (99,400 mi).

The other reason may be the recent paint issues people are having with the Model 3 in Europe and Canada. Some units present lack of paint and, worst still, a really sensitive paint job behind the wheels that is exposing the steel and provoking rust in almost new vehicles.

Impressed By The Finnish Tesla Model 3 Paint Problems? Hold My Beer

It is worth noting that deliveries of the Model 3 in Australia still have not started. The first customers to receive them will probably have to wait until September, according to The Driven.

What do you think?

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By reducing the warranty period, paint problems will be even more out of reach for customers to complain about. Not that Tesla is not doing that already: all customers who reported the thin and fragile paint on their cars were told these issues were not covered by warranty.

Sources: CarGuide.com.au and The Driven