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Extended service agreement price hike?

I could have sworn the price I saw last week was $2500 and when I just checked it, it was $4000? I just filled out my delivery survey. Could that have jacked the price or did I just have poor timing?

Update: This thread came to Elon's attention and Tesla Motors came through and gave us all a grace period to buy the ESA at the $2500 price.

First, those of you that were planning on waiting until year 4 to buy this extended warranty are surprised at the price increase? Did you think it would still be 2500 in 4 years?

Second, it isn't worth it at 4000. It's not worth it at 2500. I would just ignore this warranty and move on.

Third, some of the people complaining about how they wanted to buy this are the same ones who were saying they wouldn't buy the service plan and would just not service the car. I'm confused.

I made the decision not to buy the Extended Warranty, and I am still comfortable with that decision.

I think what we want, most of all, is for Tesla to be financially viable and successful, to service our wonderful cars and offer new amazing vehicles in the future. So if financial planning requires raising the price of Extended Warranty now, I trust Tesla’s judgment and intentions.

I understand that some people are disappointed not to receive an advance notice, but with all the work going on at Tesla, we should give them a break. They are producing an amazing zero-emission vehicle despite all the obstacles; everything else is secondary. 

Elon - Please rehabilitate the image hit that this is costing, do the right thing, and give us a week or two grace period. As DouglasR stated above, "People like to have notice of these things." We understand that prices need to go up from time to time, but don't treat us like an equation when it needs to happen.

Because there is zero life cycle reliability data available for ModS, I purchased the extended warranty as a hedge. It's like an insurance policy; you hope you don't need it, but if you do, it's there for you. I've owned my ModS for six months. It's been to the service center twice for warranty replacement of defective materials. Not a good start.

@sia If Tesla agrees with you that customer goodwill, communication protocols, transparency and efficient business practices are all secondary to producing a great technological product then the consumer will be secondary as well. So who's going to buy the excellent product, other machines?

Customer goodwill is essential for new technology. Tesla is on very shaky ground and as many have pointed out they've been given a number of breaks already.

I agree they need to give a week or two grace period for those who have already finalized order or purchased Model S.

David T. Re your point, I think that it is safe to say that most of us would have expected "reasonable" price hikes over time. I don't for a second believe that anyone considering the warranty as I was at my 33rd day of ownership would have or should have ever anticipated a 60% increase this early in the game. It is made worse with no notice being given to loyal customers. Many of us made MS purchase decisions based on a lower cost of ownership (and yes, that includes consideration for the lack of moving parts and related failure and repairs that were part of the Tesla sales pitch). I had planned to insure against that at what I felt was a "fair" $2,500 fee for an additional 4yr/50k and that was all factored into my purchase decision. Now Tesla chanegs the game substantially and implies or states (not sure which) that this will not be the case so they raise the warranty cost $1,500 without any notice to customers to allow them to purchase before the price increase. For the record, when I inquired with Tesla about the warranty early on, I was told I could add it any anytime within the 4yr/50k warranty. I expected if I delayed my decision I may see some nominal increase by not this. I emailed George with my thoughts and I hope others do as well. I have put up with a lot that is somewhat outside of the control of Tesla or which may be a function of growth pains or system and communication issues but this one is fully within their control and they have not served their loyal customers well with this move. Not well at all! I expect better from Tesla.

I am ready to place an order and then this happened. I am concerned for two reasons. First, I liked the idea of buying the warranty and 8 years of service, knowing that I would not have any surprises for 8 years or 100K miles. The cost of buying this piece of mind just went up. Second, it feels like Tesla has less confidence then they have shown in the past. Having a low cost for the warranty and standing behind the car for 8 years is important for a new car company, now they seem to be backtracking.

What is all the angst about? If you go to the "Buy" tab and click on "Service Plans", you will find the following line just above the $4,00 price for the Extended Service Agreement: "Purchase prior to July 3rd and pay only $2,500. After July 3rd, price will increase to $4,000."

This is not a price increase with no notice -- read it all for crying out loud.

Debate all you like as to whether it's worth the price, but don't go bashing the company for not providing advance notice.

@rdloftin....ummmm I did not notice that yesterday....they must have added that just today after getting feedback from customers. That is good move...

Tesla is offering a grace period for extended service agreements purchased on or before July 3rd at the previous $2,500 price. After July 3rd, the price will increase to $4,000. Extended service agreements cover the repair or replacement of parts (unless due to a collision) for an additional four years or 50,000 miles following the initial warranty expiration.

Customers who purchased agreements in the past two days at the higher price will automatically receive a $1,500 refund within one week. There is no need to contact us to receive this refund.

Tesla will continue to provide reasonable notice for changes to the base price of Model S or to a large group of options, balanced by the desire to keep unnecessary emails to a minimum.

Don't buy extended warranties on any consumer item. They are a great profit center for whoever sells them. Yes, a small minority will reap the rewards of the extended warranty but the majority of buyers will have wasted their money.

@rdloftin: That notice was added yesterday, well after all this angst began. And that's good news, as Tesla is clearly trying to do the right thing. But, as usual, corporate bureaucracy is slower than the Internet.

It looks like Tesla heard the complaint and just rolled back to $2500 for a few days.

Actually, there's no notice on my page (my MS is in production)...just the old price of $2,500, which is different than what it was yesterday morning. I wonder if I'll have access to that price until delivery or just until 7/3.

Thank you Tesla!

@Tesla
Thank you for responding to your customers and providing a grace period for this pricing adjustment.
#15638
TSLA shareholder

Folks--This notice is on the top of the Tesla Bulletins. Looks like we've got until July 3rd to purchase at $2500.

MODEL S EXTENDED SERVICE AGREEMENT PRICE CHANGE
nkinkaid@teslam... | JUNE 28, 2013
Tesla is offering a grace period for extended service agreements purchased before July 3rd at the previous $2,500 price. After July 3rd, the price will increase to $4,000. Extended service agreements cover the repair or replacement of parts (unless due to a collision) for an additional four years or 50,000 miles following the initial warranty expiration.

Customers who purchased agreements in the past two days at the higher price will automatically receive a $1,500 refund within one week. There is no need to contact us to receive this refund.

Tesla will continue to provide reasonable notice for changes to the base price of Model S or to a large group of options, balanced by the desire to keep unnecessary emails to a minimum.

Thank you Tesla for making it right for your loyal customers!

How soon after releasing from the waiting period does the opportunity to buy the warranty come up?

This is great. The services section of myTesla for the extended warranty has changed back to $2,500 from $4,000 (although the actual agreement still states $4,000). I am sure they will update that soon as well soon. Well done and great response Tesla! Way to take care of your customers!

After emailing George and Ownership, I sent Elon a tweet this morning and he came back with this:

https://twitter.com/elonmusk/status/350690638943109121

George also responded to the email this afternoon as well. Very impressive and glad to see people like Elon and George engaging owners and responding quickly and doing the right thing. This is why we stay loyal and why Tesla is different than any other car maker or any other company for that matter.

George B. must have been very impressed by the amount of emails he got. Well done!

Looks like Tesla does read these forums. Thank you!

Got the email back from GB also, so if you are going to get the extended warranty, do it before July 3.
Not a long grace period, but still it's the right thing to do.

Tesla listens to their customers!

just purchased at the 2500 price point

Just give Tesla $2500 to lock in on the extension. and got my Tesla grin back.

normally I do not buy extended warranty for stuff, but there are some exceptions. It is insurance and peace of mind. So at least now you have the choice of getting it at the old price. Actually I think the possibility of something breaking after 4 years is not that high, it's a new car, if it's going to break, it will probably do it in the first year.

THIS IS AWESOME!

I was hoping I would be able to release my order and lock in the lower warranty price. Was told I cannot buy the warranty until much closer to the delivery. Bummed again.

Just picked up at the new price point.. Did anyone notice the deductible of $200?


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