When I believe a condition was covered under some specific term of the written warranty subject to the terms of the written warranty (or any additional warranty rights unders state law).
For Model 3's the warranty explicitly says 70% so I would take that as a bare minimum, but I would also look to about 80% for Model S and X because they should have better warranty coverage although it isn't written down explicitly.
I'm agnostic as to hardware and software because the total output is always controlled by the software measuring things in the hardware so I think that is a false distinction. Some cars have a hardware condition of Z that didn't exist when the car was new, but over time, did occur. Perhaps because of the supercharging or temp when charging or just some random quantum wave collapsing the wrong way -- mechanical devices have inherent risks as part of their properly functioning design and use. That is the degradation of all sorts all overseen by the BMS overlord.
When the degradation, of whatever cause, results in more than 20%, or at least 30% (based on Model 3) loss in range or power plotted over the length of the warranty period, that is when the warranty should cover a repair or replacement.
Here are relevant selections:
If your Battery or Drive Unit requires warranty repair, Tesla will repair the unit, or replace it with a new, reconditioned or re-manufactured part at the sole discretion of Tesla. The warranty replacement may not restore the vehicle to a "like new" condition, but when replacing a Battery, Tesla will ensure that the energy capacity of the replacement Battery is at least equal to that of the original Battery before the failure occurred while taking into consideration other factors, including the age and mileage of the vehicle.
. . .
Your vehicle's Battery and Drive Unit are covered under this Battery and Drive Unit Limited Warranty for a period of:
• Model S and Model X - 8 years (with the exception of the original 60 kWh battery manufactured before 2015 that is covered for a period of 8 years or 125,000 miles/200,000 km, whichever comes first).
• Model 3 with Standard or Mid-Range Battery - 8 years or 100,000 miles (160,000 km), whichever comes first, with minimum 70% retention of Battery capacity* over the warranty period.
• Model 3 with Long Range Battery - 8 years or 120,000 miles (192,000 km), whichever comes first, with minimum 70% retention of Battery capacity* over the warranty period.
*For warranty claims specific to Battery capacity, the replacement Battery will be in a condition appropriate to the age and mileage of the vehicle sufficient to achieve or exceed the minimum Battery capacity for the remainder of the warranty period of the original Battery.
Note that the vehicle’s range estimates are an imperfect measure of Battery capacity because they are affected by additional factors separate from Battery capacity. The measurement method used to determine Battery capacity, and the decision of whether to repair, replace, or provide reconditioned or remanufactured parts, and the condition of any such replaced, reconditioned or re-manufactured parts, are at the sole discretion of Tesla.
. . .
The Battery, like all lithium-ion batteries, will experience gradual energy or power loss with time and use. Loss of Battery energy or power over time or due to or resulting from Battery usage is NOT covered under this Battery and Drive Unit Limited Warranty, except to the extent specified in this Battery and Drive Unit Limited Warranty.