Tesla’s Extended Service: Stealing From Customers?

What are You Paying For?

Tesla has recently brought to fruition an Extended Service Agreement (ESA), which car owners now have the opportunity to acquire directly from the application. This ESA is accessible primarily for cars that still remain under construction warranty from the original sale of the automobile. For example, the four-year/50,000 mile base extended guarantee provided by Tesla extends to earlier model years consisting of an 8-year/125,000 or 8-year/150,000 warranty. However, it’s worth noting that the battery and power unit assurance are disconnected and invalid with regards to obtaining the ESA.

for the program.In accordance to what Tesla has declared, those models which have been eligible are between the years 2012 to 2020 Model S and from 2015 to 2020 Model X. All Model Y and Model 3 Electric Vehicles have been part of it as well. If your car’s mileage has gone beyond 50,000 miles, then unfortunately, it no longer possesses eligibility concerning this program.

CarBuzz investigated the comprehensive, eight-page servicing accord available on Tesla’s website to decide whether it would be a wise investment.

Initially beginning with the cost and extent, all versions are encompassed by a two-year/25,000-mile service contract. The retail price is $3,100 for the Model S, $3,500 for the X, $1,800 for the 3, and $2,000 for the Y. Since the ESA is accessible via the app, it will illustrate to you how many years and miles remain prior to buying.

The ESA states that it will provide coverage for a car in the event of a “failure”, though this term is very narrowly defined in the agreement Tesla owners have to sign. According to Tesla, a “failure” constitutes a “complete failure or inability of any covered part to perform the function(s) for which it was designed due to defects in material or workmanship of any parts manufactured or supplied by Tesla that occur under normal use.” The term “normal use” is further clarified in each model’s owner’s manual, which can be accessed on the company’s website.

Potential customers might be of the opinion that the cost of the ESA is fairly bearable when compared to replacing a battery. Nevertheless, a look through the exclusions presents certain reservations about whether a person would want it. To start with, no coverage applies to the battery and drive unit, nor does it cover corrosion, storing or transportation charges. In addition, there will be no insurance for vehicles used in any kind of racing.

This appears satisfactory given it is, in truth, a service contract; however, it fails to take into consideration multiple maintenance matters and components. In accord with the trade, customary breakages and wearings-out, such as brakes and tires, are not embraced. Yet, Tesla likewise does not furnish diagnostics, wheel realigning, scrubbing, suspension alignment, or power source inspecting only to name a few. Even roadside support is not available.

It remains mysterious precisely what an proprietor is investing in, necessitating one to settle a $100 deductible for each prearranged servicing.

We carefully perused the document and were dumbfounded as to what it meant. It is quite disconcerting that Tesla has exclusive right of determining if something is a failure or not. For instance, an outright event like a broken wheel, frozen infotainment module, or malfunction the electric seat would become too expensive with the ESA that Tesla offers. We can’t think of any fault costing as much as Tesla charges for the ESA.

It was brought to light through some investigations that the typical yearly sum of money needed for a Tesla maintenance falls in-between $800 and $1,000. On top of this, customer service from Tesla’s network is not acclaimed particularly well. Therefore, it may be prudent to opt for a high-interest savings account that usually requires prior notice before funds can be accessed. Additionally, unlike an ESA, such an approach would never cease after two years or 25,000 miles.

People from Electrek have raised worries that this may be used to prop up the profits at the end of a given three-month period. Nonetheless, Tesla certainly isn’t needing the funds, due to the remarkable success of the Tesla Model Y particularly.


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