Tesla introduces extended service plan for Model 3 and Y batteries

Tesla has rolled out a new extended service agreement in the United States for the high voltage batteries and drive units in its Model 3 and Model Y vehicles. Priced at $2,000, the plan offers coverage for up to 24 months or 30,000 miles. It aims to provide owners with added protection against potential failures in these critical components.

The agreement, known as the High Voltage Battery and Drive Unit Extended Service Agreement, covers repairs or replacements for Tesla-manufactured or supplied batteries and drive units that fail within the coverage period. Owners face a $500 deductible for each such service. Notably, the plan excludes any external parts to these components.

Eligibility is straightforward and can be checked via the Tesla mobile app. Users navigate to the 'Upgrades' section, then 'Service Plans,' where the option appears if the vehicle qualifies. This service must be purchased before the standard Battery and Drive Unit Limited Warranty expires, as there is no grace period afterward. It is available only as a one-time purchase, with no subscription model offered at this time.

For those considering vehicle sales, the agreement is transferable. Once Tesla processes the ownership transfer, any remaining coverage passes to the new owner without interruption.

This development comes as Tesla continues to enhance support for its popular electric models, potentially easing concerns over long-term battery reliability for U.S. customers. The plan underscores the company's commitment to maintaining vehicle performance beyond the initial warranty.

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Photorealistic rendering of Tesla's upcoming compact SUV on a Chinese factory line with Elon Musk approving the design.
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Tesla developing compact affordable SUV amid strategy shift and sales slump, Reuters reports

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Tesla is developing a new compact electric SUV priced below the $36,990 Model 3 and measuring 168 inches (4.3 meters) long—shorter than the Model 3 (185.8 inches) and Model Y (188.7 inches)—according to Reuters citing four anonymous supplier sources. The all-new design awaits CEO Elon Musk's production approval and may launch first in China before expanding to U.S. and German factories, signaling a pivot back to core vehicles after a focus on robotaxis and humanoid robots.

Tesla has launched a promotion granting one year of free Supercharging to buyers of new Model 3 Premium and Performance vehicles in North America. The offer begins at delivery and comes with certain restrictions. It aims to provide added value amid ongoing incentives for electric vehicle adoption.

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Used prices for the Tesla Model 3 have reached record lows in 2026, with some 2019 models available for under $19,000. This depreciation comes amid broader shifts in the electric vehicle market following the end of federal tax credits. While Tesla models generally saw price increases, older Model 3s present affordable options for buyers.

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