It is rare for a company to produce a product and retroactively upgrade the warranty, yet that is exactly what Tesla have done.
In a move likely to attract new customers who previously feared the unproven drivetrain (in terms of longevity), Tesla’s Elon Musk stated in his blog post announcement that Tesla should put their money where their mouth is and offer better warranties than any internal combustion engine since they believe the electric motors to be far more efficient, reliable and low maintenance than an internal combustion engine. He wrote,
“If we truly believe that electric motors are fundamentally more reliable than gasoline engines, with far fewer moving parts and no oily residue or combustion by-products to gum up the works, then our warranty policy should reflect that.”
The interesting announcement will also please current owners of Model S 85kW models since the upgraded warranty applies to cars already on the road. Previously, warranties offered were 4 years and 50,000 miles. Now, they will be 8 years and unlimited mileage – matching the warranty offered on the battery unit.
Mr Musk hasn’t forgotten Tesla’s shareholders either, candidly stating:
“To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers. However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.”
Source; Tesla Motors
