Tesla Offers Infinite Warranty, But With a Hitch

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Big news if you’re a fan of all things Tesla. Founder and CEO Elon Musk wrote on the company’s blog that the electric car maker is offering an infinite mile warranty. To some that may sound like a warranty without conditions, except there is one: infinity only lasts for eight years.

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Teslas in factory

Musk wrote, “The Tesla Model S drive unit warranty has been increased to match that of the battery pack. That means the 85 kWh Model S, our most popular model by far, now has an 8 year, infinite mile warranty on both the battery pack and drive unit. There is also no limit on the number of owners during the warranty period.”

It’s a pretty good warranty considering no other automaker offers an unlimited mileage warranty for eight years that covers both the drive unit and the battery. Basically, all EV batteries have a required eight-year, 100,000 mile warranty on them (whichever comes first) but none match Tesla’s drive unit warranty. The Nissan Leaf, for example, only has 60-month/60,000-mile powertrain and electric vehicle system coverage (whichever occurs earlier).

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Brown Tesla

The transferable warranty is also going to help the residual values of Model S cars. Owners can use it as a selling point. Current owners will be pleased to note that the warranty is retroactive beginning with the 2012 models.

Musk told his investors the company is going to take a short-term hit because warranty reserves will have to be built up. However, he thinks the short-term pain translates into long-term gain for the company.

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