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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.


Where did you see the $200 deductible?

Read through there warranty and did not find it:

@portia.....u know how ICE extended warranty dealers sell scaring the bejesus out of car owners...they usually tell car owners your expensive car has 80% or better chance of having major part break down within 2 yrs after the expiration of original warranty...but 4 yrs extension for $2,500 is pretty reasonable for high end car like Tesla....not a bad deal..

I got a follow-up reply from Tesla telling me about the extension at the old price. Kudos, Tesla--you're good at course-correcting...better than many companies. Now, of course, I'm still a bit on the fence, but I have a few days to decide.

On the one paw, I wanted to wait so I could see how reliable it was/how many warranty issues/etc. On the other paw, I also waited for financial reasons. And on third paw, I just waited because I expected to receive notice of any price increases, and it was one less thing to think about. ;-)

I still think they can't necessarily project from early warranty issues to later potential issues, with any degree of certainty at least.

Anyway, I usually don't get extended warranties, but with such a new car/new tech, I was (and am) seriously considering it. Interesting to see some folks are saying "no way" and some are saying "just got it." Did anyone get it before? I think someone upthread was right--this may make some folks (including me) jump at it before the price increase, when before we might have put it off an ultimately not bought it.

(I did buy the 4+4 and have no regrets there--different issue, though.)


Thank you George and Elon! Tesla is the only car company in the world that I would ever expect to respond to their customers in this way. It's the right thing to do, and you continue to earn our die-hard loyalty!

Also, please work hard to improve communications in the future so that customers aren't taken by surprise in this way :)

Yes, if you read the text of the extended warranty there is a one-time $200 deductible that must be satisfied. It would be nice if they put that in the high-level description on the page where you order it.

Kinda sucks they did this on Elon's birthday. Maybe you should all just buy it at full price as a nice little bday gift for Elon!

@AmpedRealtor...I don't see any mention of deductible in the text...which paragraph and line........

@jonesxander: Coordinated, constructive feedback about how Tesla can improve is probably the best birthday gift we could offer Elon. He values our opinions, and knows that Tesla can't become the best auto maker in the world without our help. And in the long run, these customer-oriented decisions will raise his stock value far more than an additional $1,500 from a few hundred (or thousand?) customers.

@ Jamon

@ Jamon - top of page 2, section A. You can't miss it.

$200 DEDUCTIBLE - look at top of page under section A

Link to extended warranty language:

Ok I see that...I need cross check if this is a new thing or was there all along...

Let this be a lesson to other Car companies

If you want people to take the bait for your extended warranty then offer it for fairly reasonable amount, but then if not enough of them bite then suddenly increase the cost by 60%. Give it week or so for the fear to fester before they eventually give you their money for "peace of mind". Make sure to do it right in the beginning of a newly designed car cycle when the TSB's are flying out like crazy for the fear to take full effect. Probably right around the 3-6 month mark well before anyone is expecting any pricing changes.

Disclaimer - I know this wasn't the intention, but it kinda seems like once again an extended warranty comes out looking like a scam. To take someones money well before they've had a reasonable amount of time with a vehicle. To take their money they could have otherwise invested. So the actual cost would be closer to $3300 (assuming a reasonable investment return of about 10% per year).

@ S4WRXTTCS, I agree with you 100%.

The way Tesla handled this almost had me cancel my reservation yesterday. It's almost like they followed directions from a "how not to do something" book.

@justineet, the $200 deductible (one time, per part) has always been there. It's always been my least favorite part of the plan, but we're buying the plan to avoid the unexpected $1,000 (or $10,000) repair bill for when your motor unexpectedly dies for an unknown reason in year 6, or the center display conks out a week after your warranty ends, not because we're worried about a $200 repair.

A counterpoint, if I may… You're also taking a $2,500 gamble that Tesla is going to be around 6-8 years from now to fix anything. Just saying… :)

I need an expert opinion. Elon tweeted negative margin at $2500, so they had to raise the price. How does that compute? Does that mean TM expects to be making so many warranty repairs during the extended warranty period that they will be losing money if they keep it at $2500, even when we are paying a $200 deductible for each repair? What does that say, if anything, about the expected life cycle reliability of ModS. Not panicked... just curious.

I presume that Tesla estimated Y number of people will buy the warranty and service costs during years 5-8 for Y number of cars will cost X dollars. So X divided by Y = $2,500. So either they are estimating higher costs, or fewer people than anticipated purchased the warranty, or some mix of the two. Higher costs don't necessarily speak the reliability of the vehicle long-term - many different factors affect cost projections.

At least in CA, it appears money is refundable before it goes into effect in 4 years.

Jumped on the band wagon and bought it. Glad the company is small enough to listen to their customers. Ultimately, us Tesla owners are their testiment and advertisers. Keeping the early adopters happy is partly what will make the company successful. Thank you for listening and doing what is necessary to keep us owners happy!

So now I'm torn.

If I buy the ESA at $2500, I'm telling Tesla that I appreciate them listening and responding to us, which is good. But I may actually be hurting the company financially, which is bad both as a fan and as a shareholder.

Also, the $200 deductible has me perplexed. Is that per part or per visit (which could cover multiple issues) or what? I've never seen a deductible on an ESA for another car that normal?

Believe some of the costs they are seeing are a temporary spike that comes with new design and production car. Some like the 12v battery are connected with supplier issues. Others like the tire and Pano roof with design or specification issues....when they get permanent fix for these type of issues I expect overall service demand and cost to go down. In the long run it's best for Tesla to keep the extended warranty in the 2,500 bucks range..that might not be possible in the near future....but it could be in the long run if they get to the bottom of some of the cost issues that can be eliminated.'s one time deductible per part. Once a part gets fixed after u pay 200buck, will not be asked to pay anymore for that part if it breaks again.

"Once a part is repaired or replaced under the terms and conditions of this Vehicle ESA, and the
Deductible is paid, any Deductible for a future repair or replacement of that part will be waived for the
term of this Vehicle ESA."

Reading it literally, the $200 deductible applies per part that is replaced or repaired, not per visit. If that part needs to be repaired or replaced again within the extended warranty time frame, no deductible will apply. So the next question is to those of you who have had your car serviced - on average, how many parts did you see listed on your service receipt?

A $200 deductible per part could get expensive, depending on what they consider to be a "part".

Cost of transport is NOT included, it is the owner's responsibility to transport the vehicle to a service center.

"This Vehicle ESA applies to a Vehicle sold by Tesla in the Tesla North America Warranty Region and transported or driven only in the Tesla North America Warranty Region. For purposes of this Vehicle ESA, the Tesla North America Warranty Region is defined as all 50 states of the United States of America, the District of Columbia, and all 13 provinces and territories of Canada. If Your Vehicle was sold, transported or driven outside the Tesla North America Warranty Region, no warranties or coverage, including this Vehicle ESA, will apply."

So does this mean that if you drive your Model S to Mexico for day trip, your warranty is completely invalidated or just if you call for repair from Mexico? LOL

@AmpedRealtor, but those of us who are owners already invested way more than $2500 to bet that Tesla will be around. And the warranty cost will only go DOWN as they have more experience building the cars.
@S4WRXTTCS, do you know of any other company which is as responsive to their customers? car company or otherwise. It is amazing that we can write to them and get a real response and correction within a day! Of course it's better to not have to do that in the first place, still, I am sure they are learning.

LOL @ portia… so right! I'm taking a $106,000 gamble that Tesla will be around yet focus on the $2,500… yup, this is why I don't invest. LOL!

I see the option to sign up for the extended warranty at $2500 on my dashboard but don't see the option to prepay for services. Is there some time limit as to when you need to do this by? Owned my tesla for 3 months 6000 miles.

@kawaiia......the warranty you were referring to is for the first 4 years original new vehicle warranty. For the original warranty the $200 deductible doesn't apply. But for the extended warranty, it applies.

No I am not talking warranty I am referring to the plan to prepay for services at $1900 rather than $600 per service. That option is not on my dashboard. How are people signing up for it.

It's on my dashboard, but I haven't yet taken delivery of the vehicle - it went into production today.

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