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Tesla Extended Warranty Overview

The Tesla Extended Service Agreement stretches warranty coverage for up to 2 years or 25,000 miles.

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Brogan Woodburn
By: Brogan Woodburn Senior Writer

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 01/15/2024

Motor1 Reviews Team Take:

  • The Tesla Extended Service Agreement is available for all Tesla models and extends coverage by up to 2 years or 25,000 miles.
  • You must purchase a Tesla Extended Service Agreement before the 4-year/50,000-mile Basic Limited Vehicle Warranty expires.
  • The cost of a Tesla Extended Service Agreement varies by model, but ranges from $1,800 to $3,500.
  • All Tesla long-term protection plans feature a $100 deductible.

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.

Tesla Extended Warranty Coverage

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 8-year warranties. Coverage from Tesla’s Extended Service Agreements begins when the new-car limited warranty expires.

Tesla Extended Warranty Exclusions

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.

Tesla Extended Warranty Cost

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 ModelExtended 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 December 2023 to better understand vehicle owners’ experiences with extended warranties from vehicle manufacturers.

One driver with a brand new Tesla Model X indicated that he was pleased with his warranty purchase. “I’m decently satisfied,” he said. “I feel like it’s a bit overpriced, but it’s better safe than sorry. I would [purchase again] because I like how much it covers. It makes me feel safe and assured.”

Is A Tesla Extended Warranty Worth It?

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.

Tesla Factory Warranty

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.

Tesla Warranty Exclusions

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 regularly issues over-the-air software updates 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.

Parts, Body, And Paint Repair Limited Warranty

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:

  • Sheet metal: Lifetime limited warranty
  • Drive unit: 4 years/50,000 miles
  • Vehicle high voltage battery: 4 years/50,000 miles
  • Wall connectors: 4 years
  • Touchscreen and media control unit: 2 years/25,000 miles

Tesla Used Vehicle Limited Warranty

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.

Tesla Reliability

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 2023 J.D. Power U.S. Vehicle Dependability Study℠ found that Tesla vehicles experience 242 problems per 100 cars. That’s quite a bit higher than the average number of 186 across all automakers. Tesla was not eligible for formal ranking because it did not meet study criteria because Tesla did not grant J.D. Power permission to survey owners in 15 states where it is required.

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.

Consumer Reports had put both Tesla models on its “Recommended” list but later removed them. In November 2019, the publication put both Tesla models back on its Recommended list, because owner surveys showed Tesla had largely addressed the problems. Complaints about technical problems, including the adaptive cruise control, vehicle cameras, and warning lights, also declined.

Based on its owner surveys, Consumer Reports gave low marks to the Model X, Tesla’s SUV with unusual, vertically opening rear “falcon doors.” (Car enthusiasts call these “gullwing doors.”) The doors, in particular, were criticized for problems, but Consumer Reports also cited other issues, such as water leaks, noises, and overall “worse-than-average” reliability.

Overall, however, Consumer Reports says Tesla rates highest among all brands for owner satisfaction. That is according to what owners said in their surveys.

Tesla Maintenance Cost

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.

Tesla Aftermarket Warranty

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.

Best Extended Warranty For Tesla

After we analyzed and compared coverage for Tesla models, we believe some third-party companies like CarShield offer better extended warranties for Tesla owners. These companies provide more customizable plans to fit your budget while offering protection to help ensure your peace of mind. CarShield earned our award as the Best for Electric Vehicles due to its coverage options and cost for EVs.

Tesla Extended WarrantyCarShield
Start DateUpon expiration of factory warrantyAnytime
Max Length of Coverage2 years/25,000 miles10 years/300,000 miles
# of Plan Options16
Deductible$100$0. $50, $100, $200
Trip InterruptionNoYes
Roadside AssistanceYesYes
Repair NetworkTesla dealers onlyRepair facilities certified by the National Institute for Automotive Service Excellence (ASE®)
Cancellation PolicyAnytimeRefund if within 30 days
AvailabilityFrom local dealerFree, 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 $139.99 per month on average. However, you may pay more for electric vehicle coverage.

Bar graph depicting the four most popular extended auto warranty companies, as reported by respondents in our 2023 customer survey.

Tesla Extended Warranties: Conclusion

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.

Tesla Auto Extended Warranty: FAQ

Below are frequently asked questions about Tesla extended warranties.

Can I buy a Tesla extended warranty if I buy my Tesla from a private seller?

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.

When can I buy the Tesla Extended Service Agreement?

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.

Can I purchase the Tesla Extended Service Agreement online?

No, you must buy it from a Tesla Service Center.

Do I pay a deductible for repairs?

There is a $100 deductible for repairs covered by the Tesla Extended Service Agreement.

Is Tesla’s extended warranty transferable?

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.

Can I include the cost of the extended warranty in my vehicle financing?

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.

Can I cancel the Tesla extended warranty?

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.


In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of extended auto warranty companies to formulate rankings of the best providers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.

  • Industry Standing: Warranty providers with a history of strong business practices and endorsements from experts receive the highest scores in this category.
  • Coverage: This rating is based on types of extended warranty plans available, coverage terms, and added benefits like roadside assistance.
  • Cost: Our research team reviews sample quotes for a variety of plans and vehicles. Companies with lower prices per year of coverage receive the best scores.
  • Transparency: This score takes into account contract transparency and the availability of a money-back guarantee.
  • Customer Service: We comb through customer reviews and perform our own shopper analysis to get a sense of the responsiveness and helpfulness of each warranty company.

*Data accurate at time of publication.