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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.

Has anyone contacted Mr. Blankenship for a clarification of these important details?

@Brian H

Poor Richard notwithstanding, I'm pretty sure no one would let an obvious problem (torn seam in your analogy) fester. The question is can the service of the car discover a critical problem that is otherwise undetectable to the driver? And if this is the case that problem could fester for a year in between services.

I just don't think a situation that could void the ESA could only be discovered with regular service visits. Of course, if a driver ignores an obvious problem then he shall reap what he sows.

There are a great many non-drivetrain parts on a car that can fail prematurely after 4 years have passed, such as bearings, steering components, suspension, interior elements, etc., that the MS still has. I drive less than 7,000 miles a year (although I understand that may be increasing after mine's delivered later this month ;-), so my warranties usually die because of age rather than miles. Also, I can only imagine how much TM would charge to replace the touchscreen, and I don't think I've ever owned a monitor, let alone a touchscreen monitor, that I used daily that lived more than 5 or 6 years. So, for me, the ESA seems totally worth it. My only concern is where TM will draw the line between "manufacturing defect" and "normal wear and tear," as who's to say how long a bearing or a touchscreen should last?

@cfOH. Looks like they address that as follows:

“Failure” means the 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. Failure does not include the gradual reduction in operating performance due to normal wear and tear.

The fact is, that there are many grey areas in which companies can argue warranty coverage. Resolution often comes down to a combination of both one's credibility in articulating one's problem, and the general character and approach that an organization takes toward servicing their customers. Tesla has proven to me to be exemplary in this regard so far and I would expect that they will continue to be as they differentiate themselves, grow their business and steal market share from their competitors (most of whom don't behave this way, by and large).

@jtodtman. I had an e-mail dialogue going in parallel with George B. on this since I felt like it was potentially a major point of contention down the line for Tesla and anyone who may have purchased the ESA. He essentially confirmed this morning that the warranty agreements take time to revise and require multistate approvals, which they have received, but not yet incorporated into the agreement itself. He also confirmed that Elon has commented publicly on this matter himself, and then went on to confirm soecifically that service is not required to maintain the ESA.

This makes complete sense to me, and is totally consistent with their position on service/warranty. Case closed as far as I'm concerned. I am completing my warranty purchase this morning.

I'm getting this warranty as well, if not for the mere fact that I can buy for $2,500 something that Tesla values at $4,000.

@JohnnyMac I appreciate you getting us an answer to that while the option to buy at a discount is still open.

@AmpedRealtor I'm not quite sure what your config is but if it's a 60 or an 85 there's a chance you might want to take advantage of upgrading through the loaner/purchase program before your 4 years are up. The ESA is not transferable to another car, only another person.

Happy to share @jtodtman. Just giving back a small amount of what this forum has given to me since joining. Appreciate all of your contribution as well!

@ jtodtman, thanks for the tip. I'm getting a P85 so I hopefully won't feel the need to upgrade. If I do end up selling my Model S down the road, having the ESA would add value and seal the deal for a prospective purchaser. I wish I had a crystal ball… :)

An ounce of prevention ...

New tech, new model, new exigencies.

it stated very clearly on the Canadian website that the price change will Occur on July 4th 2013 so there is still time for folks who are still interested.

Here's a funny thought… what if on Friday Tesla announces no price change to the ESA, citing "higher than expected demand, therefore margins have improved and the price remains unchanged."

I smell a master plan… LOL

If you couldn't tell from my previous, cynical post - I just bought the ESA. The first extended warranty I ever purchased was AppleCare for my iPad last year. To that point, I had never purchased an extended warranty and always thought they were a rip off. Well guess what? My best front dropped my iPad last September face down onto pavement, then tripped and stepped on it, her and the iPad sliding along the asphalt for about 2 feet. AppleCare instantly paid for itself and I now have a lovely, smashed iPad as a centerpiece.

Today I find myself in the position of buying an ESA for a vehicle when I have never done so in the past for any of my other cars. But none of my previous vehicles were breakthrough, first-of-their kind technologies to be mass produced for the first time. Hopefully my Model S will fare better than the iPad… :)

OMG "best front"="best friend"

Tip: Don't let your best friend borrow your Tesla. :-)

You sure had me wondering about possible origins of that phrase!


Funny thing is, I would still feel good about the purchase at $2,500 even if they do enact the master plan and maintain the current rate, at least as long as I don't trip and step on my Model S :)

Please post pics so we can determine for ourselves if "best front" is in order.

I bought it in late afternoon and was glad I hadn't missed my chance . . . yeah, I'm a last-minute kinda guy sometimes. ;-) I went back 'n forth on it, but ultimately decided it was a good idea. We'll see how it plays out in 4, 5, 6, 7, and 8 years.

Party on, Teslans!

I came to know about the price increase yesterday and sent an email to ownership. A Tesla representative called me today and confirmed that the price was indeed going up tomorrow and that I had till midnight today to purchase at $2500. I just went to the site to purchase the ESA and it now shows the new price of $4000. It's 10:50 PM now in California. I sent an email to ownership about this and I got an automated reply that they are closed for 4th of July. Not sure what's going to happen now! Anyone else in a similar situation?

I found the same thing when I tried to purchase the ESA at 11:00PM MST. (10:00PM California) Perhaps the price changed at midnight EST but all it said was "July 3". I emailed customer service as well.

I was alerted to the price raise by this forum a little while ago.
Sure enough, the web page listed $4,000 with no provision for adding an explanatory note. Since it was 2250 California time, I bit the bullet and authorized withdrawal of $4,000, but immediately called customer service, explained the situation and asked him to verify that my purchase was made before midnight July 3, Fremont time. He gave me his name and assured me that I would hear from Tesla on Friday.
We'll see...

Same thing happened to me. Emailed ownership on the night of July 3rd and today they called. They honored the $2500 original price as long as I purchased the ESA today. I did. Great customer service.

Horrible move on Tesla's part. I was scheduled to get my delivery in two days and signing up for the service agreements but to do this without an advanced notice makes me wonder what else this company may pull in the near future, especially since this is completely against their policy of "superior customer service"

If one buys the 4+4 year service plan for $3,800.00 does one have to buy the extended service agreement as well to ensure that the warranty is there for parts after the first $50,000 or 4 years time frame.
If so then what is the difference ???

Yes, to your answer.

The ESA does justs that; it extends the bumper to bumper protection for the car.

The 4+4 Service Plan prepays for a yearly, or every 12000 miles service. You pay $475.00 per visit as opposed to $600.00 per visit, and probably going higher, if you don't take the plan.

Know this, Elon has stated that you do not need to have your car serviced to keep the warranty in force.

The service plan covers normal maintenance items.

The extended service agreement covers part failure.

To be fully covered for 8 years, you will need both. Though you have the option to purchase only one or neither.

These plans are transferrable to a new owner - and there may not be an option to purchase them after the first 30 days of ownership.

Things like this are a reason why some people don't want to be early adopters. Too often can early customers be pulled into something that can end up having a very different cost structure than anticipated.

Moves like this should be avoided. Tesla isn't taking absolutely best care of roadster owners, despite them "making" Tesla and stuff like this, not the best thing to follow up with...

It is easy to turn fans into enemies, especially when expectations are high. Expectations towards Tesla are some of the highest I think.

@car t man Things like this are a reason why some people don't want to be early adopters.

Things like what?

Don't ever buy an extended warranty on anything. It is always a suckers bet. When a company offers an extended warranty they carefully estimate the average expected cost of repairs for the warranty period and then substantially jack up the price so they can make a profit. There will always be anecdotal experiences where people come out ahead with an extended warranty but averaged out over time you will always shell out more than you get back in services. Consumer Reports advises against service contracts and extended warranties for this very reason.

I think you may be overgeneralizing--for Best Buy, it may be a good rule of thumb, but for 4 extra years coverage of a $120K vehicle, either price is quite reasonable. Ask Pungoteague Dave whether he's glad his car was under warranty and whether he'd plan to to extend it, if he keeps it beyond 4 years.

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