Infinite mile warranty for Tesla Model S

Tesla Model S
19 Aug, 2014 11:15am Jordan Bishop

Tesla increases Model S 85kWh drive unit warranty to match its battery pack’s infinite mile guarantee

The Tesla Model S in its best-selling 85kWh guise now has an eight year, infinite mile drive unit warranty, brining it into line with the American electric vehicle manufacturer’s battery pack guarantee.

There’s no limit on the number of owners covered by the warranty period and, in a move sure to please existing customers, the extension will apply retroactively to every Model S built since the luxury five-door saloon’s 2012 launch.

The policy change is designed to reflect Tesla’s faith in electric motors, which co-founder and CEO Elon Musk described on the company website as “fundamentally more reliable than gasoline engines”.

Following Tesla’s recent decision to ditch its range of technology patents – opening up its EV know-how to competitors – this latest ideology-based shake-up may lead to a few raised eyebrows amongst investors.

“I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels,” added Musk. “This is amplified by the fact that we are doing so retroactively, not just for new customers.”

“However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.”

It’s certainly an interesting time for Tesla, which last month official confirmed its plans for a BMW 3 Series-rivalling Model 3, and also intends to create a brand new R&D centre in the UK.