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Battery warranty

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Now I love my Tesla like a third child, but I have one niggle which worries me.

Just what does the warranty on the battery cover? Just total failure or degregation over a certain percentage?

For example if the car is 7.5 years old and I only get 100 miles from a charge, will they repair/replace it?

Is there any threshold of percentage loss that has been deemed to be unreasonable?
 
It does not cover degradation. In many cases Tesla has replaced batteries under warranty. It's rare that something goes wrong with the battery but as far as I can tell, Tesla has always honored their warranty. Loosing range is a different thing, though. They don't cover it. Neither degrading performance or slower charge rate due to degradation/age of the battery.

It seems Tesla's batteries will hold up pretty well. From the data we have so far, degradation happens quick in the beginning of the life of the car, then slows down. I have about 9% degradation after 135k miles and 3.7 years and lots of Supercharging and heavy use.