Tesla extends battery and drive unit warranty by two years

Tesla has rolled out a High Voltage Battery and Drive Unit Extended Service Agreement (Battery ESA) for Model 3 and Model Y owners in the United States and Canada. The plan adds paid coverage on top of the existing factory Battery and Drive Unit Limited Warranty once that original coverage ends.​

What the new Battery ESA covers

The Battery ESA pays for repair or replacement of the high‑voltage battery and drive unit when Tesla confirms a covered failure during the agreement period. Work must be completed by Tesla service using parts supplied or approved by the company, and normal terms on remanufactured parts can apply.​

Owners still pay a per‑visit deductible. In the United States, the deductible is US$500 per covered repair visit, while in Canada reports point to a CA$500–CA$700 level depending on region and tax context. This fee applies each time the car goes in for a qualifying repair under this plan, so repeated failures would trigger multiple deductibles.​

The agreement applies only to failures of the high‑voltage battery and the drive unit assembly, not to other systems such as suspension, HVAC, interior electronics or body hardware. Those parts remain tied either to Tesla’s base vehicle warranty or, for some owners, to a separate extended vehicle service contract.​

Coverage length, mileage and price

The Battery ESA runs for 24 months or 30,000 miles in the United States, and for 24 months or 48,000 kilometers in Canada, whichever comes first. It starts right after the original Battery and Drive Unit Limited Warranty ends, so there is no overlap if a driver buys the contract at the latest possible point.​

The one‑time cost is US$2,000 in the United States and CA$2,800 in Canada before local taxes. For many owners this extends total battery and drive unit coverage from eight years to about ten years, depending on how fast they accumulate miles. Since Tesla does not offer a payment plan for this contract at launch, buyers must pay the full amount up front.​

New Tesla vehicles ship with a factory warranty on the high‑voltage battery and drive unit that covers defects for 8 years and a set mileage limit tied to the trim:​

• Many Model 3 and Model Y versions carry coverage for 8 years or 100,000–120,000 miles with a guarantee that usable battery capacity will stay at or above 70% during that period.​
• If capacity falls below that threshold within the original warranty period, Tesla may repair or replace the pack under the standard warranty at no extra charge to the owner.​

The new Battery ESA does not extend the 70% capacity promise; instead, it provides continued failure coverage after the base term expires. Capacity loss alone past the original warranty window would likely not qualify unless Tesla classifies the problem as a failure under the ESA terms.​

Who can buy the Battery ESA

The contract is currently limited to Model 3 and Model Y vehicles; it does not apply to Model S, Model X or Cybertruck at launch. The car must still be under its original Battery and Drive Unit Limited Warranty on the date the owner buys the Battery ESA, with no grace period after expiry.​

Tesla sets a few extra conditions:​

• The vehicle cannot have a branded, salvage or total‑loss title.
• The buyer must be the current registered owner in Tesla’s system.
• The vehicle typically cannot be under certain types of fleet or commercial programs that Tesla excludes in its service agreement terms.

If the standard battery warranty has already ended, the app option disappears and the owner cannot retroactively buy the Battery ESA.​

How to purchase the agreement

Eligible owners access the contract directly in the Tesla app. Tesla guides users to open the app and tap:

“Upgrades” > “Service Plans” > “High Voltage Battery and Drive Unit Extended Service Agreement”.​

The app then lists price, coverage term and the deductible. After purchase, the coverage attaches to that vehicle’s VIN under Tesla’s service records, so service centers can confirm eligibility if a failure occurs.​

Tesla already sells a broader vehicle Extended Service Agreement (ESA) in some markets. That contract covers many mechanical and electrical systems once the basic new‑vehicle warranty ends but excludes the high‑voltage battery and drive unit. The new Battery ESA is separate and focused.

Here is a direct comparison:

Plan type	Main components covered	Eligible models	Term and mileage	Price (US)	Deductible (US)
Vehicle Extended Service Agreement	Many mechanical and electrical systems, but not high‑voltage battery or drive unit	Model S, 3, X, Y (varies by market and year)	Often 2 years / 25,000 miles beyond basic warranty	Around US$1,800–US$3,500 depending on model and term​	About US$100 per visit​
High Voltage Battery and Drive Unit Extended Service Agreement	Only high‑voltage battery and drive unit	Model 3 and Model Y only at launch	24 months / 30,000 miles (US) or 24 months / 48,000 km (Canada) after battery warranty​	US$2,000 one‑time; CA$2,800 in Canada before tax​	US$500 per visit; about CA$500–CA$700 per visit in Canada

Some owners may hold both contracts at the same time later in the car’s life: one for general systems, one for the battery and drive unit. For now, the Battery ESA remains limited to Model 3 and Model Y, which are Tesla’s highest‑volume cars.

Owners can check eligibility and current pricing in the Tesla app under “Upgrades > Service Plans > High Voltage Battery and Drive Unit Extended Service Agreement” if it appears for their car. Since the option disappears once the original battery warranty ends, drivers who are interested need to look before that date passes.

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