Is Tesla’s Extended Warranty Worth It? Costs and Benefits

Car dealership critics will often tell you never to buy the extended warranty, but buying from Tesla is a bit different than buying from a dealership. Not to mention, some Tesla repairs are costly, and for that reason, having an extended warranty could prove to be beneficial. 

Tesla’s extended warranty is worth it if you anticipate unintended repairs and plan to keep the car for as long as possible. Manufacturer defects are often inevitable, so having that safety net in place can help. However, given its limitations, you might be better off with a private policy.

The extended warranty or extended service agreement (ESA) isn’t ideal for every Tesla owner. Below, we’ll break down the features, costs, and drawbacks of the company’s extended warranty so that you can make a more informed decision. 

What Does the Tesla Extended Warranty Cover?

The Tesla extended warranty covers unintended failures that result from defective materials or poor workmanship and 24-hour roadside assistance. Only available for the Model S and Model X built before February 2021, it will last a maximum of 4 years or 50,000 miles (80,467.2 km).

Here’s some essential information about Tesla’s extended warranty program:

  • There is a $200 deductible that must be paid each time you go in for a repair.
  • The extended warranty requires that you have your vehicle regularly serviced according to Tesla recommendations. 
  • You will have to keep your vehicle’s software updated.
  • Battery and drivetrain are already covered for eight years/100,000 miles (160,934.4 km).
  • You can cancel the warranty within 60 days for a full refund and even receive partial refunds for cancellations after the initial 60 days. 
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Whether or not Tesla’s extended warranty is right for you will come down to your personal driving habits, as well as your ability to pay for repairs in the future.

What Are the Costs of Tesla’s Extended Warranty?

Tesla’s extended warranty will cost between $2,100 and $4,750 for the Model S and between $2,400 and $5,300 for the Model X. The lower prices are for two-year warranties purchased within 180 days of the in-service date. The higher amounts are for four-year warranties purchased after 180 days.

Whether or not it’s worth it will often come down to the cost of repairs needed during that time. 

Unfortunately, Tesla’s exact repair costs are sometimes hard to pin down. However, they can be costly, with some owners reporting paying $1000+ to repair the door handles. 

Tesla ModelESA TermPurchased within 180 days of the in-service datePurchased after 180 days of the in-service dateDeductible 
Model S2 years or 25,000 Miles$2,100$2,600$200 per visit
Model S4 years or 50,000 miles$4,250$4,750$200 per visit
Model X2 years or 25,000 miles$2,400$2,900$200 per visit
Model X4 years or 50,000 miles$4,800$5,300$200 per visit
The table breaks down the costs associated with Tesla’s extended warranty for each model and warranty term.

When purchasing an extended warranty, you are – in some sense – betting that you’ll spend more on repairs than you will for the warranty itself. 

For example, if warranty-eligible repairs on your Model X would cost you more than $4,800 (or $5,300) over our years, the extended warranty for that model would be worth it for you.

The $200 deductible is something to keep in mind as it will be required with each repair visit. So, if you visit a service center five separate times for a covered repair, that will be an additional $1000 you’ll still be paying out of pocket. 

Consider Your Existing Coverage

Both new and certified pre-owned Teslas will come with a factory warranty that varies for each model. The battery and drive unit for the vehicles are also covered for up to eight years from the start. 

The factory warranty is often a four-year/50,000 mile (80,467.2 km) term, so if you plan on switching vehicles before reaching these milestones, there wouldn’t be any reason for you to purchase an extended warranty. 

That being said, older cars are more likely to malfunction, so if you intend to keep your Tesla for as long as possible, it may be worth it for you to extend the warranty for another two to four years. 

All warranties have their exclusion items, and Tesla certainly has plenty of them. Many of these exclusions are pretty standard, but others may surprise you.

Of course, issues arising from negligence, abuse, tampering, or alterations won’t be covered either.

The rest of the exclusions are found in Tesla’s terms and conditions for the extended service agreement. 

The below YouTube video also goes deeper into the exclusions, as well as the warranty as a whole:

What Isn’t Covered by Tesla’s Extended Warranty?

Tesla’s extended warranty does not cover tires and wheels. Also not covered are vehicles with defaced VINs or altered odometers, covered parts that are damaged by non-covered parts, regular wear and tear, corrosion and paint defects, and damage from theft, vandalism, or natural disasters.

Things To Consider Before Buying Tesla’s Extended Warranty

Whether or not it’s worth it, Tesla’s extended warranty is a major expense. While you won’t need to pay for it all upfront, you should still think carefully about the various factors that might affect the warranty’s worth:

Your Driving Habits

Tesla’s ESA covers your vehicle for four years or 50,000 miles (80,467.2 km). It’s whichever comes first, so before you commit to buying, you’ll want to consider your driving habits. 

Somebody who drives an above-average number of miles per year might get less value out of the ESA than somebody who drives more conservatively. 

If you have the potential to put in 25,000/year, for example, your extended warranty might only last you two years instead of four – even though you technically paid for four. 

How Long You Plan on Keeping the Car

Are you somebody who switches vehicles frequently? If you think you might get rid of your Tesla before the extended warranty expires, it may not be in your best interest to purchase it in the first place. 

With that being said, the ESA is also transferable, meaning you can pass it on to the next owner. This could be an attractive selling point that allows you to increase the price.

Your Faith in the Vehicle

The reliability of Teslas has been shaky in recent years, especially when the company was struggling with production demands. While the reliability may have improved, consider your own worries and concerns. 

Are you afraid you might wind up spending a lot of money fixing defective parts on your vehicle? If so, you find the extended warranty to be quite valuable. 

Your Future Budget for Repairs

If you can afford to pay out of pocket for repairs that might come up, an extended warranty may not mean much to you. 

However, if you wouldn’t be able to pay for a sudden failure that made your car defective or inoperable, you may find comfort in having that safety net in place. 

Given that you can typically pay for these warranties monthly, you could avoid a bill of thousands of dollars. 

If you’d like to read a related article I wrote about Chevy Volt Battery Warranty check it out here.

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EV Speedy’s Take

The actual cost of Tesla’s warranty doesn’t differ too wildly from other extended warranties, but the $200 deductible that’s required for each visit might be on the high end of the spectrum.

At the end of the day, you may not need an extended warranty if you still have the original warranty and don’t plan on keeping the vehicle for very long. 


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Is Tesla’s Extended Warranty Worth It? Costs and Benefits 1
Erwin Meyer
Erwin Meyer

Thanks for visiting evspeedy.com. The goal of this site is to be a helpful resource for Tesla and EV owners as this is where my passion lies. I was a TSLA shareholder before the hype and still am. I also believe in Tesla’s speedy mission to accelerate the world to a sustainable future.