Tesla has launched a new option for owners to extend their Model Y battery warranty from 8 to 10 years. The move comes with a catch: it’s not free. For $2,000 up front and a $500 deductible per claim, Tesla owners in the US and Canada can buy peace of mind just not as much as early leaks had hinted at.
Model Y battery warranty falls short of rumors
Initial reports teased a 12-year warranty or even a subscription model starting at $100 a month. Instead, Tesla stuck to a simple 2-year extension. Still, this marks a shift. Until now, it had only covered the high-voltage battery and drive unit for 8 years or 120,000 miles, with 70% capacity retention guaranteed. With this extension, Model Y owners get two more years of coverage but they’ll pay for the privilege.
Tesla’s Robotaxi fleet is going fully driverless as unsupervised FSD rolls out to Model Y owners with HW4, merging into public OTA updates.
What Tesla’s 10-year battery warranty includes
Tesla’s Extended Service Agreement (ESA) applies to both the Model Y and Model 3. Here’s what it includes:
- Two additional years of battery and drive unit coverage
- $2,000 flat fee (CA$2,800)
- $500 deductible per battery service during the added term
- Transferable to the next owner if sold before the extension expires
- Only available before the original 8-year warranty ends
It won’t show up for just anyone owners need to check the Tesla app while their factory coverage is still active.
It faces pressure from longer rival warranties
Tesla’s not exactly leading here. Hyundai and Kia already offer a 10-year battery warranty at no extra cost, and they do it with faster-charging 800V systems. In China, talks are underway to standardize 15-year warranties with 85% battery capacity. That kind of pressure may be nudging Tesla to offer upgrades, even if it charges for them.
Tesla bets on battery longevity to limit risk
It likely isn’t worried about too many claims. The company’s battery tech already lasts well beyond the 8-year standard in most cases. So by charging up front and tacking on a deductible, Tesla is playing the odds offering extra coverage while knowing most owners won’t need it. And if they do? A replacement still won’t cost Tesla much more than the fee they already banked.
