Tesla Slashes Used Car Warranties From 4 Years/50K To 1 Year/10K Ahead Of Q3 Results

Tesla Slashes Used Car Warranties From 4 Years/50K To 1 Year/10K Ahead Of Q3 Results
Long-term ownership of electric vehicles remains a touchy subject. Unlike conventionally-powered cars, EVs simply haven't been around long enough to get a clear idea of what happens once the miles really start to pile up. That said, there are some promising early signs as a Tesla Model S owner is about to reach 750,000 miles in his car. Tesla even went as far as to stop recommending scheduled maintenance on its vehicles last year as they were simply that reliable.

All of which makes the company's latest move more curious, namely, the rather significant shortening of the warranty for used Teslas. As reported by Electrek, Tesla previously offered a two- to four-year warranty on used Model X SUVs and Model S sedans.


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supermotosupermoto - 10/20/2020 3:42:59 PM
+2 Boost
How can there be no schedule maintenance and inspections? Do Teslas not have bearings, bushings, tires, etc?

Seems like Tesla just doesn't want their service centers booked up for the next 6 months.


atc98092atc98092 - 10/20/2020 4:24:47 PM
0 Boost
Bearings, bushings and tires are not scheduled service items on any car. They are wear items that are replaced as required.

But yes, I'm sure there's still some maintenance that should be done on a scheduled basis, such as flushing brake fluid. It retains moisture and needs to be changed every couple of years. Not that everyone does it, but it is a recommended item.


mre30mre30 - 10/20/2020 4:11:21 PM
+2 Boost
Hmmmm...guess the bad news on the upcoming earnings call is that warranty costs are going thru the roof!

Tesla has fostered a sense of entitlement amongst its customer base to the extent that they all tolerate the abysmal quality because "Tesla fixes it for free!"

The customers, who "get stuff fixed for free" then have no idea that the fact that their car got bricked in their driverway, took $7,000 in parts and labor to fix because they never see the bill.

This is going to be an eye-opening few months for Tesla shareholders I imagine.




mre30mre30 - 10/20/2020 4:28:13 PM
+1 Boost
The normalization of the warranty is the first step towards allowing the resale values of used Tesla's to be set by (and float with) the marketplace and not be arbitrarily propped up by Tesla Corporate.

Curious to see if Tesla resale values mirror the cataclysmic depreciation of other more main stream EV's such as the Nissan Leaf.



atc98092atc98092 - 10/20/2020 4:30:25 PM
+2 Boost
Considering other manufacturers only offer whatever remains of the new car warranty, and some of those don't even fully transfer to a different owner, is Tesla so much different? I don't own one and am highly unlikely to ever do so, but offering any sort of warranty on a used vehicle from from the manufacturer seems like it's something worthwhile.


supermotosupermoto - 10/20/2020 4:36:23 PM
+1 Boost
atc98092, when a car goes in for scheduled maintenance, the mechanic inspects a many areas of the car, and signs off on the inspection.

99% of car owners are not really capable of doing this themselves. Sometimes I wish cars were required to be inspected and maintained just like aircraft are.


vdivvdiv - 10/20/2020 7:58:04 PM
+4 Boost
Agree with supermoto, Tesla vehicles including my S need an upkeep, often have systems exhibiting pre-failure symptoms that need attention, i.e. brake pads delaminating, door handles and hatch actuators, radiator louvers, dirty or damaged charging port, coolant valves and pumps, washer fluid pump (twice replaced on mine), instrument cluster and media center computers, etc, etc, not to mention missing or lose fasteners from the factory, water intrusion due to poor assembly/lose weather stripping, paint issues, the list can go on.


mre30mre30 - 10/21/2020 7:38:59 AM
0 Boost
Wow - quite a list! How much of those repairs were covered under warranty? I assume everything?


vdivvdiv - 10/21/2020 12:51:40 PM
+3 Boost
So far Tesla has covered almost everything either through the original warranty or the extended service agreement, which gives an idea why they want to cut them short. The challenge often has been for them to acknowledge the issues and fix them the first time, necessitating countless trips to the service center.

I still like the car and put up with it, but I know some won't and have traded it in for a 3/Y or left the brand. Craziest to me anecdote, last time my car was in for service an Uber driver (no more loaners, Tesla gives Uber credits for alt. transportation) picked me up in a new Jeep Gladiator, said he used to drive an X, couldn't be happier with the Jeep, is more fun and more reliable.


mre30mre30 - 10/21/2020 2:26:06 PM
+1 Boost
I rest my case.

I suspect you would like your Tesla much less if you had to pay for all those repairs yourself.

Tesla will ultimately wither and die unless they can improve the quality of their vehicles.

Range doesn't matter if your car is constantly in the shop.


vdivvdiv - 10/21/2020 2:56:40 PM
+3 Boost
I did pay for them, upfront. I paid for a very expensive at the time car, I paid for an extended service agreement, I "educated" others about the company and products, and I bought TSLA stock that I still have.

So as long as there are more idiots/cult members like me, Tesla will be alright ;)


Section_31_JTKSection_31_JTK - 10/20/2020 9:09:50 PM
+3 Boost
This move by Tesla is to protect their bottom line since the build quality on their cars is so poor. It shifts the cost for fixing the many things that break to their customers.


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