A Tesla Model Y owner faces a decision on the company's Extended Service Agreement as the vehicle's original warranty nears expiration. The monthly plan costs $60 and covers repairs after the basic warranty ends, but excludes key components like the battery and drive unit. Owners weigh the benefits against maintenance requirements and exclusions.
The author's Tesla Model Y is set to turn four at the end of November 2025, triggering an email from Tesla offering an Extended Service Agreement (ESA). This subscription provides limited coverage for mechanical and electrical repairs after the original New Vehicle Basic Warranty expires, while the traction battery and drive units remain under an eight-year warranty.
Priced at $60 per month or $720 annually, the ESA is flexible and cancellable anytime, with a maximum term of eight years from purchase or 100,000 miles, whichever comes first. For the author, who plans to keep the vehicle another four years, the total cost would reach $2,880. Benefits include coverage for repairs or replacements of most Tesla-manufactured parts under normal use and 24/7 roadside assistance.
However, eligibility requires adherence to the owner's manual and Tesla's recommended maintenance, which the author has skipped due to the 60-mile drive to the nearest service center. Activation may necessitate a pre-inspection at the owner's expense. The agreement mandates binding arbitration for disputes through the American Arbitration Association, near the owner's home, preventing lawsuits.
Exclusions cover the high-voltage battery, low-voltage battery, drive unit, and wear items like brakes, rotors, shocks, wipers, and bulbs. Installing non-Tesla parts could void coverage if they cause failures, posing risks during roadside repairs far from Tesla centers.
Feedback from other owners varies. The author's son-in-law repaired suspension squeaks for less than the warranty's cumulative cost and plans to decline. CleanTechnica editor Zachary Shahan also opted out, noting the current monthly option is cheaper than the prior $1,800 for two years but pros and cons remain similar. The author, experienced with dealership warranties, views the ESA as a bet and will reveal their decision after reader input.