Maybe Tesla Motors is reacting to the Consumer Report nitpicking of a few flaws they found on the Tesla Model S they bought, but news of a Tesla warranty upgrade is certainly good news.
As I covered in Teslarati, Consumer Report finds a few “flaws” with the Model S they own. The company is probably responding with a Tesla warranty upgrade. I know of no car that has zero flaws. It’s statistically improbable. I also know of very little startup who designed a car from the ground up with as much success as the Model S. In fact, I don’t know of too many cars that achieve the same performance and quality as a Model S. Does that mean Tesla Motors is perfect and the Model S is the best car on the street today? It’s a question of perspectives. But a Tesla warranty upgrade is definitely something its drivers will welcome. Does one test on one car deserve that sensational headline? It’s really stretching the meaning of journalism.. I’m sure a few Ferrari, Rolls Royce, and Maybach owners have had problems.
Press Release:
Today, Tesla announced that the Model S drive unit warranty has been increased to match that of the battery pack. That means the 85 kWh Model S now has an 8 year, infinite mile warranty on both the battery pack and drive unit. Moreover, the warranty extension will apply retroactively to all 85 kWh Model S vehicles ever produced.
No other changes have been made to the warranty.
Here’s what CEO Elon Musk wrote about the new policy in a blog post today:
Infinite Mile Warranty
The Tesla Model S drive unit warranty has been increased to match that of the battery pack. That means the 85 kWh Model S, our most popular model by far, now has an 8 year, infinite mile warranty on both the battery pack and drive unit. There is also no limit on the number of owners during the warranty period.
Moreover, the warranty extension will apply retroactively to all Model S vehicles ever produced. In hindsight, this should have been our policy from the beginning of the Model S program. If we truly believe that electric motors are fundamentally more reliable than gasoline engines, with far fewer moving parts and no oily residue or combustion byproducts to gum up the works, then our warranty policy should reflect that.
To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers. However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.
