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Out of warranty concerns about Tesla

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TO: Whoever At Tesla Who Sets Policy

FROM: A Present MS Owner (and probably quite a few other owners)

SUBJECT: Post 4 Yr 50K Warranty & Tesla's ESA

I am a satisfied owner of my late Sep 2014 delivered S85, but out of warranty repairs by Tesla worry me I took the comments that Elon Musk made publicly to heart. I had already come to my own conclusions about many of his visionary announcements, including non-fossil fueled vehicles, decreasing global warming and emissions, a new way for the world to drive, a more reliable mass market vehicle, and to a lesser extent, Tesla's stated policy of service being profit neutral. Sure,.it's a revolutionary product, and while there's been many setbacks, there's quite a bit to be proud of.
Please understand my consternation of Tesla's ESA policy. Tesla has promoted that the Tesla electric vehicle is inherently more reliable than internal combustion engined vehicles, but then takes the owner to the proverbial cleaners if you are out of warranty, or purchase the customer-unfriendly ESA. Sure, Tesla is a different type of car company than Mercedes Benz, BMW, Lexus, Cadillac, Infinity, but you should revamp your ESA. Beside being way overpriced in comparison to other luxury make of vehicles, it severely undermines your statements about electric vehicles being significantly and intrinsically more reliable than ICE vehicles. A $4000 ESA price tag and a ridiculous per issue cost just irritates us who want to believe that Tesla is even handed and fair. Actually it's causing some of us to question whether a Tesla that's out of warranty is a good vehicle to own,have or even purchase. Quite a few people have ponied up the initial price, have had a few issues within the warranty period, and now question the advantages of owning a Tesla. Tesla's policy of not selling parts to the typical owner (or independent shop, for that matter) and extremely high priced, limited availability of reasonably priced body repair facilities, no service tools or documentation available, and the very restrictive policy dealing with salvage-titled vehicles does set Tesla far apart from the industry. These issues also tend to affect the resale value of our Tesla's, but in a markedly negative direction. I think Tesla would concur that quite a few people buy the latest and greatest Tesla, and Elon does quite a bit to push that. However, their trade-ins (CPO) and used Tesla's are dropping much faster than they should, due to the poor ESA, high maintenance costs, and even the lack of the ESA for CPO cars. I am asking Tesla this question. Do you really believe that Tesla is doing the right thing? Do you believe in your product? I have talked to quite a few people, several who I believe have become fans, or customers of Tesla.

Reconsider some of the policies that I have mentioned. You are wearing the leader's shirt. Don't relinquish it for all of the wrong reasons.

Just an Individual MS owner


Scotty
 
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I don't think there's any evidence that this is currently effecting resale values of Teslas. Had that been the case I would have bought used like I always do rather than new but the used prices were just not worth it and nobody was dealing.

Now I have no doubt that if Tesla doesn't fix this or clarify it and if owners start experiencing extremely high repair costs, then resale values will plummet because the market will be flooded with folks trying to get out. But so far that hasn't happened.
 
But not every high end car requires expensive repairs. I've never had an expensive repair or any repair on any Lexus I've ever owned. My current Lexus was $65K new and I expect it to go over 300K miles like my last Lexus did without any problems.

I find it difficult to believe that Tesla would deny warranty coverage on say the 17" display unless there was required maintenance that you did perform. Extended warranties whether offered by the manufacturer or a third party still spell out what maintenance is required in mileage and or time intervals.

If Tesla really wrote the ESA to mean that the entire warranty is voided because you didn't do the $600 inspection every 12500 miles, I can't imagine there aren't consumer laws that would say no no to that. Now if a suspension component goes out because you they *would* have inspected it and would have done some minor preventative maintenance to prevent a more catastrophic failure later on, I could see that holding water.

But the first time someone with an ESA is denied warranty coverage for a part that doesn't require maintenance because they didn't do the $600 inspection every 12.5K miles, that's going to hit the press big time. I can imagine the field day CR has with that one. CR already warned that Tesla is right on the edge of being kicked off the recommended list because of the owner surveys.

So maybe the ESA was written that way and if so, it's a bad contract, but I seriously doubt Tesla is just going to void the entire ESA because you didn't give them $2400 previously for inspections.

I plan to change the battery coolant every 4 years and the brake fluid when the moisture exceeds 1% or the copper level exceeds 200 ppm.

I asked my service center about this issue. They said that for pre-paid service, to bring the car in annually regardless of mileage, and it will not impact the ESA whatsoever. My service advisor had to check with someone higher up before calling me back with this information. I plan on being in compliance with the annual visits, regardless of miles. I currently have 30,000 miles on the car even though the mileage interval for year 2 service is 25,000 miles. Service said no problem, bring her in! :)

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To the best of my knowledge the lease has nothing to do with warranty coverage. If you lease a Model S for 4 years and run up over 50,000 miles you will not be covered under the bumper to bumper coverage for the remainder of your lease and you are on your own for the cost of paying for those repairs. Presumably when you return the car you are supposed to return it with any applicable repairs already completed or the lease company will go after the lesee for the cost of any outstanding repairs. So the lease company is never in a position of handling warranty issues. They just expect the car back with all repairs done and the car in proper working order.

I believe the lease requires annual service, at least in the USA.

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TO: Whoever At Tesla Who Sets Policy

FROM: A Present MS Owner (and probably quite a few other owners)

SUBJECT: Post 4 Yr 50K Warranty & Tesla's ESA

I am a satisfied owner of my late Sep 2014 delivered S85, but out of warranty repairs by Tesla worry me I took the comments that Elon Musk made publicly to heart. I had already come to my own conclusions about many of his visionary announcements, including non-fossil fueled vehicles, decreasing global warming and emissions, a new way for the world to drive, a more reliable mass market vehicle, and to a lesser extent, Tesla's stated policy of service being profit neutral. Sure,.it's a revolutionary product, and while there's been many setbacks, there's quite a bit to be proud of.
Please understand my consternation of Tesla's ESA policy. Tesla has promoted that the Tesla electric vehicle is inherently more reliable than internal combustion engined vehicles, but then takes the owner to the proverbial cleaners if you are out of warranty, or purchase the customer-unfriendly ESA. Sure, Tesla is a different type of car company than Mercedes Benz, BMW, Lexus, Cadillac, Infinity, but you should revamp your ESA. Beside being way overpriced in comparison to other luxury make of vehicles, it severely undermines your statements about electric vehicles being significantly and intrinsically more reliable than ICE vehicles. A $4000 ESA price tag and a ridiculous per issue cost just irritates us who want to believe that Tesla is even handed and fair. Actually it's causing some of us to question whether a Tesla that's out of warranty is a good vehicle to own,have or even purchase. Quite a few people have ponied up the initial price, have had a few issues within the warranty period, and now question the advantages of owning a Tesla. Tesla's policy of not selling parts to the typical owner (or independent shop, for that matter) and extremely high priced, limited availability of reasonably priced body repair facilities, no service tools or documentation available, and the very restrictive policy dealing with salvage-titled vehicles does set Tesla far apart from the industry. These issues also tend to affect the resale value of our Tesla's, but in a markedly negative direction. I think Tesla would concur that quite a few people buy the latest and greatest Tesla, and Elon does quite a bit to push that. However, their trade-ins (CPO) and used Tesla's are dropping much faster than they should, due to the poor ESA, high maintenance costs, and even the lack of the ESA for CPO cars. I am asking Tesla this question. Do you really believe that Tesla is doing the right thing? Do you believe in your product? I have talked to quite a few people, several who I believe have become fans, or customers of Tesla.

Reconsider some of the policies that I have mentioned. You are wearing the leader's shirt. Don't relinquish it for all of the wrong reasons.

Just an Individual MS owner


Scotty

Send that to elonmuskoffice (at) teslamotors.com. That would probably be more effective. Or send a tweet to @ElonMusk. In fact, let's all start tweeting him about this. He'll probably respond at some point.
 
I've got the ESA, but in reading it I'll be damned if I can figure out what would even be covered. It seems like the exclusion list covers damn near everything: water leaks, failed sealed headlights, shock absorbers, bumpers, sheet metal, bright metal, the battery itself, windshields, etc. I haven't been able to come up with something that'd be covered. I guess maybe the inverter or drive unit and that's basically it. The center screen doesn't seem to be excluded, that's good, I've had to have it replaced once already.
 
Send that to elonmuskoffice (at) teslamotors.com. That would probably be more effective. Or send a tweet to @ElonMusk. In fact, let's all start tweeting him about this. He'll probably respond at some point.

If anyone is planning to Tweet Elon, the poor guy is currently on vacation unless I'm mistaken... Give him some much deserved time off but yes, when he returns back to work, I think these policies and how they affect his customers should be brought to his attention. Especially given how some of these policies are contrary to the sentiments about Tesla Service that Elon has expressed on his blog posts...

What does Elon do on vacation? Wing walk on a plane, on course :)


WingWalk.JPG

http://time.com/3989875/elon-musk-wingwalking/

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I've got the ESA, but in reading it I'll be damned if I can figure out what would even be covered. It seems like the exclusion list covers damn near everything: water leaks, failed sealed headlights, shock absorbers, bumpers, sheet metal, bright metal, the battery itself, windshields, etc. I haven't been able to come up with something that'd be covered. I guess maybe the inverter or drive unit and that's basically it. The center screen doesn't seem to be excluded, that's good, I've had to have it replaced once already.

I've read through the ESA and it could very well be the worst Extended Warranty (ESA) in the entire automobile industry. :scared:

We had one of our Air Suspension shocks replaced under the Mercedes CPO warranty and it was a non-issue as it was covered under the CPO warranty. Same for a panoramic roof rattle. It was fixed under the CPO warranty, no questions asked.
 
I've got the ESA, but in reading it I'll be damned if I can figure out what would even be covered. It seems like the exclusion list covers damn near everything: water leaks, failed sealed headlights, shock absorbers, bumpers, sheet metal, bright metal, the battery itself, windshields, etc. I haven't been able to come up with something that'd be covered. I guess maybe the inverter or drive unit and that's basically it. The center screen doesn't seem to be excluded, that's good, I've had to have it replaced once already.

I didn't realize that.

Every manufacturer extended warranty I've purchased didn't have any exclusions. They way they were written is that they extend the original bumper to bumper warranty. Given the high cost and the per issue deductible, this looks worse than the crappy third party warranties I've seen. I think I'll pass on it.
 
My extended warranty on my Prius was simply an extension of the manufacturer's bumper-to-bumper warranty. It even covered replacement of my 12v battery - which I only needed one in over 120,000 miles.

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What sucks about Tesla's ESA is that you can't read the text of the actual agreement until after you buy it. I suppose you could request a refund if you didn't like the language, but still.
 
I didn't realize that.

Every manufacturer extended warranty I've purchased didn't have any exclusions. They way they were written is that they extend the original bumper to bumper warranty. Given the high cost and the per issue deductible, this looks worse than the crappy third party warranties I've seen. I think I'll pass on it.

This is why I've said that the Tesla Extended Warranty (ESA), as it is written, is likely the worst Extended warranty in the entire car industry. You could pass on buying it but personally there is absolutely no way I'd own one out of warranty coverage, especially after reading about some of the recent experiences.
 
I asked my service center about this issue. They said that for pre-paid service, to bring the car in annually regardless of mileage, and it will not impact the ESA whatsoever. My service advisor had to check with someone higher up before calling me back with this information. I plan on being in compliance with the annual visits, regardless of miles. I currently have 30,000 miles on the car even though the mileage interval for year 2 service is 25,000 miles. Service said no problem, bring her in! :)

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I believe the lease requires annual service, at least in the USA.

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Send that to elonmuskoffice (at) teslamotors.com. That would probably be more effective. Or send a tweet to @ElonMusk. In fact, let's all start tweeting him about this. He'll probably respond at some point.

Again, if Tesla doesn't enforce the terms of its ESA (when the time comes) because you didn't service according to the schedule as required, it only affects you. It doesn't mean that anyone else will be able to claim that "Amped Realtor got his SC to say 'no problem' with bringing it in annually without respect to mileage" and get an iota of sympathy from Tesla. Let alone getting repairs done under the ESA.
 
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Again, if Tesla doesn't enforce the terms of its ESA (when the time comes) because you didn't service according to the schedule as required, it only affects you. It doesn't mean that anyone else will be able to claim that "Amped Realtor got his SC to say 'no problem' with bringing it in annually without respect to mileage" and have get an iota of sympathy from Tesla. Let alone getting repairs done under the ESA.

I don't believe I've said anything to the contrary. Notice the word "I" in my above post. I don't have any authority to set Tesla policy, but I can speak to MY experience and what I have been told.