A Tesla extended warranty can extend your coverage after your factory warranty expires. But while Elon Musk’s company offers its own branded Tesla Extended Service Agreement (ESA), it’s not your only choice for coverage.
Our research team took an in-depth look at extended warranty options for Tesla vehicles to compare the manufacturer’s plans to others from some of the top extended auto warranty providers in the country. We share what we learned in the article that follows.
The Tesla ESA is a bumper-to-bumper warranty that offers similar coverage to the new vehicle factory warranty. It covers repair costs for many of the car’s components that fail due to material or workmanship defects. However, the ESA is only available for the company’s Model X and Model S vehicles. At this time, the company does not offer extended warranty coverage for Tesla Model 3 and Tesla Model Y vehicles.
The table below shows the different term lengths for ESA plans.
Tesla 2-Year Extended Service Agreement
2 years/25,000 miles or 4 years/50,000 miles
2 years/25,000 miles or 4 years/50,000 miles
How to Buy a Tesla Extended Warranty
You can purchase an ESA plan only through the Tesla app. The option to purchase is under the “Upgrades” tab.
Importantly, you have a limited window of when you can purchase coverage. You can only add extended warranty coverage for your Tesla up to 30 days/1,000 miles after your original New Vehicle Limited Warranty expires. Past the 30-day/1,000-mile point, you’ll no longer be eligible for the official Tesla ESA plan.
How Much Does a Tesla Extended Warranty Cost?
How much a Tesla ESA costs depends on when you purchase it. The company has separate warranty prices for owners that purchase a plan either before or after 180 days from the delivery of their vehicle. The table below shows the difference in cost.
Extended Warranty Term Limit
Purchased Within 180 Days of In-Service Date
Purchased After 180 Days from In-Service Date
2 years or 25,000 miles
4 years or 50,000 miles
2 years or 25,000 miles
4 years or 50,000 miles
Tesla Extended Warranty Deductible
All Tesla extended warranties come with a $200 deductible per repair shop visit. Unfortunately, the manufacturer doesn’t provide any additional deductible options.
What’s Not Included in the Tesla Extended Warranty
Like any service agreement, the Tesla extended warranty comes with certain exclusions. Here are a few examples of items and causes of damage that are not covered under Tesla’s warranty:
Tires and wheels
Theft or vandalism
Abuse or negligence
Lithium-ion battery and drive unit
Accidents or collisions
Racing or competitions
Commercial vehicle use
Corrosion or paint defects
Modified or non-Tesla parts
Lack of proper maintenance
Vehicles with altered odometers
Wear-and-tear items like brake pads
Routine maintenance services like oil changes
Repairs performed by non-authorized mechanics
It’s important to note that you’ll need to take your vehicle into an Authorized Tesla Service Center for any covered repairs to comply with the Tesla extended warranty.
Tesla Extended Warranty Benefits
The Tesla extended warranty comes with 24-hour roadside assistance. This includes emergency services such as towing and tire services.
However, most automakers and third-party providers offer many more benefits. You can find perks such as rental car reimbursement and travel interruption coverage from other warranty companies.
Can You Transfer a Tesla Extended Warranty?
If you sell your Tesla while it’s still under warranty, you can transfer the warranty to the new owner. The remaining coverage period on the used Tesla will stay the same.
Can You Cancel a Tesla Extended Warranty?
Tesla owners who purchase an ESA can cancel their service contract. If you cancel your plan within 60 days of purchase without any claims made, you’ll receive a full refund. After 60 days, you can still cancel at any time and receive a prorated refund.
Do You Need a Tesla Extended Warranty?
Whether or not you need an extended warranty for your Tesla depends on a few things. When it comes to the financial value of a warranty, you should consider the likelihood that you’ll need repair work and the cost of repairs for the brand. There are also questions to consider such as whether or not you already have coverage and how you prefer to manage your finances.
A brand’s reliability rating is based on how likely and frequently they need repairs. Unfortunately, Tesla is considered one of the least reliable automotive brands in the world. Tesla ranked 30th of 33 car brands for overall reliability in the 2021 J.D. Power U.S. Vehicle Dependability StudySM. Only Jaguar, Alfa Romeo, and Land Rover are considered to be less reliable.
In short, you are more likely to need repairs for your Tesla than you would for almost any other vehicle. That means that you may get more value out of an extended warranty for a Tesla than you would with most other vehicles.
Tesla Repair Costs
Teslas are prized for their technology, but those high-tech features tend to cost a lot to repair or replace. According to RepairPal, the average annual cost of repairs and maintenance for Tesla vehicles is $832. That’s nearly double the average cost for Hondas and Toyotas, but slightly below the average repair costs for BMWs.
Such high repair costs mean that if you do need repairs – and it’s likely you will – you’ll have to pay quite a bit for them. Without a warranty, you’ll have to pay those costs out of pocket. That’s another reason you may get a good value out of a Tesla extended warranty plan.
What Coverage Do You Already Have?
It’s possible that you already have coverage on your vehicle. The company packages a factory warranty with every new vehicle and a certified pre-owned (CPO) warranty on some used Teslas.
Tesla Factory Warranty
All new Teslas are covered by a 4-year/50,000-mile New Vehicle Limited Warranty, which provides high-level, bumper-to-bumper coverage. This plan covers most parts, aside from components like normal wear-and-tear items.
New vehicles are also protected by a Battery and Drive Unit Warranty, but term lengths differ based on what Tesla model you own. This is Tesla’s equivalent of a powertrain warranty, and it guarantees that your battery will keep a minimum 70-percent capacity retention. Here’s the breakdown of the coverage:
Model S and Model X: 8 years or 150,000 miles
Model 3 and Model Y Long Range or Performance: 8 years or 120,000 miles
Model 3 and Model Y Standard or Standard Range Plus: 8 years or 100,000 miles
Tesla CPO Warranty
Tesla offers a CPO warranty for some used models bought from an official dealership. However, the CPO warranty is only available for Model S or Model X vehicles. In addition, cars must be under 4 years old and have fewer than 50,000 miles on the odometer.
These cars are protected by a Used Vehicle Limited Warranty for 4 years or 50,000 miles from the date your vehicle is delivered to you. Tesla CPO coverage mimics that of the New Vehicle Limited Warranty. However, Tesla excludes the Battery and Drive Unit Warranty from CPO protection plans.
Other Reasons to Consider a Tesla Extended Warranty
The decision to purchase extended coverage is more than just a financial one. Even if you don’t get every dollar you spend on your plan back in covered repairs, there are still a few benefits, including:
Predictable expenses: When you buy an extended warranty, you make a one-time fee or monthly payments to reduce or eliminate the risk of surprise repair bills. For many people, this is an easier way to manage finances and keep them predictable.
Peace of mind: Some people simply appreciate not having to worry about their lives being impacted by sudden repair costs. An extended warranty plan for your Tesla gives you one less thing to worry about.
Third-Party Tesla Extended Warranties
The branded Tesla ESA isn’t your only choice for extending your factory warranty coverage. You can also purchase extended coverage from an independent provider. Not every third-party provider offers coverage plans for electric vehicles (EVs) just yet, but there are still a few options.
Independent Tesla Extended Warranty Advantages
Extended warranty plans from independent providers don’t have the branding of the Tesla ESA, but they do have some key advantages over the manufacturer’s extended coverage. These include:
More repair shop options: The Tesla ESA requires you to take your vehicle to an official dealership for repair work, of which there are only 160 in the country. Independent providers, on the other hand, allow you to use your coverage at any of more than 1,500 repair centers with ASE-certified technicians.
Multiple plan options: While the ESA has just one coverage plan, third-party providers tend to offer multiple levels of coverage. This allows you to pay for coverage you want and skip coverage you don’t.
Wider purchase window: You have to purchase an ESA within a specific window close to when you first got your Tesla. But with independent service plan providers, you can purchase coverage at almost any time.
More purchase options: If you want to buy an ESA plan, you have to buy it from the dealership or through the Tesla app. By contrast, you can purchase an independent coverage plan online from any device or over the phone.
Coverage for more vehicles: Tesla only offers ESA coverage for Model S and Model X vehicles. However, third-party providers will cover other Tesla models, such as the Model 3 and Model Y.
More term length options: In addition to multiple levels of coverage, independent providers also give you options on the length of your extended warranty plan. That means you can purchase just a one-year warranty if you want or extend your coverage for multiple years into the future.
Tesla Extended Warranty: Conclusion
The official Tesla extended warranty, known as the ESA, is a reasonably good value considering the price of the plan, the likelihood of needing repairs, and the cost of repairs. However, its availability is severely limited. You can only purchase an ESA plan for two Tesla models, and you must purchase it within a relatively small window of time.
If you want extended coverage for your Tesla, our research team encourages you to consider third-party options. An extended warranty from an independent provider gives you much more flexibility and many more options on how much coverage you have and how long you have it.
Recommended Third-Party Tesla Extended Warranty
Because Teslas are such specialized vehicles, many third-party providers do not cover them. However, one of our top-rated providers, CarShield, does offer Tesla coverage.
CarShield offers coverage that can extend up to 300,000 miles and was named the company that is Most Affordable in our industry-wide review. CarShield also provides added benefits that the Tesla extended warranty lacks, including rental car reimbursement and trip interruption coverage.
The official extended warranty on a Tesla is called an Extended Service Agreement (ESA). It is a comprehensive service plan similar to the factory warranty with a few exceptions. You can also purchase an extended warranty for a Tesla from a third-party provider.
Can I buy extended warranty for my used Tesla?
You can buy an extended warranty for a used Tesla in one of a few ways. Some CPO Tesla vehicles come with an extended warranty. These warranties also transfer to new owners when you buy a vehicle through official channels. You can also but an extended warranty for a used Tesla from a third-party provider.
How much does Tesla warranty cost?
A Tesla warranty costs between $2,100 and $4,750 depending on the model, term length, and when you purchase the coverage.
Can you add warranty to a Tesla?
You can add a warranty to a Tesla in one of several ways. If your Tesla is relatively new, you may be able to purchase an ESA plan from the company. Otherwise, you can add a warranty to a Tesla by purchasing coverage from a third-party provider.
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best extended auto warranty providers.
Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team performs ongoing secret shopper analyses for different vehicles, mileages, warranty plans, and locations to give this rating.
Coverage: Because each consumer has unique needs, it’s essential that a car warranty company offers an array of coverage options. We take into account the number of plans offered by each provider, term limits, exclusions, and additional benefits.
Industry Standing: Our team considers Better Business Bureau (BBB) ratings, availability, and years in business when giving this score.
Customer Service: Reputable extended car warranty companies operate with a certain degree of care for consumers. We take into account customer reviews, BBB complaints, and the responsiveness of the customer service team.
Tesla Extended Warranty
Our team rated Tesla extended warranty 3.9 out of 5.0 stars.