Is a Tesla Extended Warranty Worth It? (2020)

  • The Tesla extended warranty offers unique powertrain coverage.
  • The manufacturer’s vehicle service agreement lacks extra perks.
  • CarShield is a trusted third-party extended Tesla warranty provider. 

Affiliate disclosure: Automoblog and its partners may be compensated when you purchase the products below.

Tesla has become a pioneer in the electric vehicle industry, but its cars are far from immune to mechanical issues. A Tesla extended warranty helps ensure that the automaker’s innovative vehicles hold up in the long run.

In this article, we’ll go over how the Tesla extended warranty is designed to help you save hundreds or even thousands on repair costs after a mechanical breakdown. We’ll also discuss the benefits of third-party plans and how they compare to Tesla’s coverage.

Our research team has combed through industry-leading providers and found that CarShield offers the best extended car warranty for Teslas. You can get a free quote from CarShield below.

Tesla Extended Warranty Overview

The Tesla extended warranty, or extended service agreement, is a bumper-to-bumper warranty available for Model X and Model S vehicles. It covers repair costs for most vehicle parts if they fail due to a defect in materials or workmanship. The agreement excludes coverage for the car’s lithium-ion battery and drive unit, which come with their own separate warranty coverage.

Drivers can choose from a 2-year/25,000-mile term limit or a 4-year/50,000-mile term limit. These terms are measured starting from the end of your factory warranty.

If you already own a Tesla, you can add on extended warranty coverage up to 30 days/1,000 miles after your original New Vehicle Limited Warranty expires, but it will cost less if you purchase coverage sooner rather than later. Past the 30-day/1,000-mile point, you’ll no longer be eligible for a Tesla extended warranty and will have to look into third-party alternatives.

At this time, Tesla does not offer extended warranty coverage for Model 3 and Model Y vehicles.

Additional Perks

The Tesla extended warranty comes with 24-hour roadside assistance, which is a nice perk. However, most automakers and third-party providers offer many more benefits, including rental car reimbursement and travel interruption coverage.

If you sell your Tesla while it’s still under warranty, coverage can be transferred to the subsequent owner.

The Tesla extended warranty is also cancelable. If you cancel your contract 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. 

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
  • Battery and drive unit
  • Accidents or collisions
  • Racing or competitions
  • Commercial vehicle use
  • Environmental damages
  • 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.

Do You Need Extended Warranty Coverage?

Whether you need a Tesla extended warranty depends on several different factors. Here are a few questions to consider when deciding whether extra protection would be a good investment for you:

  • How reliable is your Tesla? If you have a highly reliable car, an extended warranty might not be worth the investment. 
  • How long do you intend to keep your Tesla? If you intend on trading in your Tesla before your New Vehicle Limited Warranty expires, there’s little sense in purchasing extra protection.
  • Do you want to increase your Tesla’s resale value down the line? If your Tesla’s factory warranty has expired, extended warranty coverage could increase your car’s resale value if you sell it to a private owner.
  • Can you afford repair costs outright? Some drivers can afford a costly unexpected repair bill, but others cannot. Assess your personal financial situation and see whether you’d benefit from financing repairs over time with a Tesla extended warranty. 

Teslas are expensive cars to repair, which makes sense considering the intricate electrical systems that make the vehicles one-of-a-kind. Luxury cars also often have expensive repair costs because the parts and components themselves are costly. For these reasons, you may want to consider a Tesla extended warranty.

What Coverage Do You Already Have?

Before purchasing a Tesla extended warranty, you’ll want to take your existing coverage into account. Let’s go over the Tesla factory warranty for new and certified pre-owned (CPO) vehicles.

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

The CPO Tesla warranty is pretty straightforward. Only Model S or Model X vehicles can be sold as CPO Teslas, and they need to 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.

Tesla Extended Warranty Cost

A Tesla extended warranty costs anywhere from $2,100 to $5,300, depending on your vehicle model, contract term limit, and when you purchase coverage. As mentioned, prices go up the later you purchase coverage.

Fortunately, Tesla is very transparent about what its extended warranty plans cost. Here’s a breakdown from the manufacturer:

Tesla Model Extended Warranty
Term Limit
Purchased Within 180 Days
of In-Service Date
Purchased After 180 Days
from In-Service Date
Model S 2 years or 25,000 miles $2,100 $2,600
Model S 4 years or 50,000 miles $4,250 $4,750
Model X 2 years or 25,000 miles $2,400 $2,900
Model X 4 years or 50,000 miles $4,800 $5,300

All Tesla extended warranties come with a $200 deductible per repair shop visit. Unfortunately, the manufacturer doesn’t provide any additional deductible options.

Benefits of a Third-Party Extended Warranty

Third-party extended warranties, especially plans from reputable extended car warranty companies, may be a better option for Tesla owners. While these plans are more generalized than a manufacturer’s warranty, they offer much more flexibility without compromising your peace of mind. Here are a few benefits of choosing a third-party provider:

  • More deductible options
  • More repair shops available
  • Longer coverage term lengths
  • Coverage can be purchased at any time in your vehicle’s life

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 200,000 miles and was named the company with the Best Prices in our industry-wide review. CarShield also provides added benefits that the Tesla extended warranty lacks, including rental car reimbursement and trip interruption coverage. 

For a full rundown on the provider, read our comprehensive CarShield review. You can also see how much a CarShield warranty would cost for your Tesla by clicking below.