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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Realistic photo of a Tesla car in a service center with a screen showing subscription extension for features like Full Self-Driving during repairs.
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Tesla extends subscriptions during extended service visits

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Tesla has introduced a new policy that automatically extends active subscriptions and free trials for vehicles in service longer than one business day. This change ensures owners do not lose access to paid features like Full Self-Driving during repairs. The update applies regardless of whether a loaner vehicle is provided.

Tesla is set to raise lease pricing for its Model 3, Model Y, and Cybertruck in the United States, with hikes of up to 67% effective December 26, 2025. Customers must order and apply for leasing by that date and take delivery by December 31 to secure current rates. The changes include higher monthly payments and increased down payments across variants.

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A 2021 Tesla Model 3 Long Range, formerly used as a taxi in the United Kingdom, has accumulated 238,000 miles in four years while retaining its original battery and motor. Owners report minimal breakdowns and significant savings on fuel compared to a gas-powered equivalent. This example highlights improvements in Tesla's reliability for post-2021 models, despite earlier concerns from Consumer Reports.

Tesla has begun offering short-term rentals of its electric vehicles directly from select U.S. stores as sales decline following the end of the federal EV tax credit. The program starts at $60 per day and includes free Supercharging and Full Self-Driving features. It aims to attract potential buyers with incentives like a $250 purchase credit.

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Building on initial December promotions amid global sales challenges, Tesla details U.S.-focused incentives like zero-percent financing, $299 monthly leases, and three months of free Full Self-Driving to clear inventory and offset lost federal tax credits after November's sub-40,000 unit sales.

As part of its recent push into more affordable EVs with Standard variants of the Model 3 and Model Y, Tesla's entry-level Model Y has drawn mixed reviews. Priced from £41,990 in the UK ($39,990 in the US), it emphasizes efficiency and usability but includes cost-saving simplifications that divide opinions.

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Tesla has introduced a new all-wheel-drive version of its Model Y electric SUV, priced at $41,990, slotting between the base rear-wheel-drive model and premium trims. This addition expands options for buyers seeking better traction without premium features. The company also dropped the 'Standard' branding for entry-level models.

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