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Tesla Launches Monthly Extended Service Agreement Subscriptions Starting at $50/Month

Tesla

Tesla has introduced its first monthly Extended Service Agreement subscription program in the United States, offering owners an affordable way to maintain coverage after their factory warranty expires. Tesla Extended Service Agreement provides protection for up to four additional years beyond the standard warranty period, representing a significant expansion from previous coverage options.

Subscription model allows owners to pay monthly fees ranging from $50 to $150 depending on their vehicle model, rather than purchasing extended coverage as a lump sum. Approach makes post-warranty service protection more accessible to Tesla owners who prefer predictable monthly expenses over large upfront payments.

Tesla has introduced a monthly Extended Service Agreement subscription in the U.S.

Tesla has introduced a monthly Extended Service Agreement subscription in the U.S.

The Tesla Extended Service Agreement monthly fees vary based on vehicle model and complexity. Model 3 owners pay $50 monthly, while Model Y subscribers face $60 monthly charges. Model S requires $125 monthly, and Model X owners pay the highest rate at $150 per month.

Coverage extends for up to four additional years beyond the standard four-year basic factory warranty, creating potential eight-year total protection. Alternatively, coverage terminates when vehicles reach 100k miles, whichever milestone occurs first. Represents a substantial improvement over previous extended coverage that lasted only two additional years or 25,000 miles.

The Tesla Extended Service Agreement covers repair or replacement costs for most Tesla-manufactured or supplied parts that fail during the coverage period. Subscribers pay a $100 deductible per service visit, regardless of the repair complexity or parts required.

However, significant exclusions apply to the coverage terms. The high-voltage battery, drive unit, and 12V battery remain outside the agreement’s scope. Additionally, bodywork, maintenance parts, and issues stemming from accidents, modifications, or normal wear don’t qualify for coverage under the program.

Tesla owners must enroll in the Extended Service Agreement while their vehicles remain under factory warranty. Tesla sends reminders three months before factory warranty expiration to ensure owners don’t miss enrollment opportunities.

Leased vehicles currently don’t qualify for the Tesla Extended Service Agreement subscription. However, Tesla plans to extend eligibility to lease-to-purchase customers by the end of 2025, expanding the program’s accessibility to more users.

The Tesla Extended Service Agreement operates through the Tesla mobile app under the Upgrades section. Owners can review coverage terms, subscription fees, and payment information before confirming their enrollment in the program.

Tesla plans to expand subscription eligibility to used titled vehicles in the near future, though specific timelines haven’t been announced. Cybertruck will also receive Extended Service Agreement availability soon, completing coverage across Tesla’s current vehicle lineup.

This subscription approach aligns with broader industry trends toward service-based revenue models rather than one-time purchases. Monthly payment structure reduces barriers to extended coverage adoption while providing Tesla with predictable recurring revenue streams.

Extended coverage period and mileage limits address previous customer complaints about insufficient protection options. Four additional years of coverage versus the previous two-year limit gives owners substantially more protection during the period when vehicle repairs typically become more frequent and expensive.

For Tesla owners weighing post-warranty protection options, this new monthly subscription model makes the decision to extend coverage much more agreeable – both financially and practically.

How to Subscribe Through the Tesla App

Owners navigate to ‘Upgrades,’ then ‘Service Plans,’ and finally ‘Extended Service Agreement’ to access subscription options.

App displays subscription fees and coverage terms for review before purchase. Once owners tap ‘Subscribe,’ they’ll confirm payment information and complete the enrollment process digitally.

Entire subscription process can be completed without visiting a service center or speaking with a representative, though support remains available for owners who prefer assistance.

Tesla’s Extended Service Agreement represents a smart evolution in vehicle protection that puts power back in owners’ hands—or should we say, back in their apps?

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