For owners planning to keep their Model 3 or Model Y for the long haul, Tesla has quietly released a new warranty option. The introduction of a High Voltage Battery and Drive Unit Extended Service Agreement in the United States and Canada will allow owners to extend coverage on the vehicle’s most expensive components for a flat fee of $2,000 USD / $2,800 CAD.
Previously, Tesla’s other Extended Service Agreements (ESA) focused on the general vehicle limited warranty. This new standalone ESA targets the powertrain - the heart of your EV - and offers an additional buffer against potential failure after the standard 8-year warranty expires.
Cost and What’s Included
The new ESA is priced in with a one-time purchase (no subscription is offered at this time). In exchange for $2,000 USD, Tesla will extend the coverage of your High Voltage Battery and Drive Units by:
24 Months, or
30,000 Miles (48,000 KM)
This new coverage kicks in immediately after your original Battery and Drive Unit Limited Warranty expires.
Deductible
It is important to note that, unlike the original warranty, this extension comes with a deductible. If you need a repair or replacement under this ESA, there is a $500 deductible per visit. However, given that a full battery replacement can cost between $10,000 and $15,000 USD, the deductible is a manageable cost for most owners.
No Grace Period
Another item that’s critical to note is the eligibility window. There is absolutely no grace period for this warranty offer. You must purchase this ESA before your vehicle’s original Battery and Drive Unit Limited Warranty expires. Once that original warranty period lapses, whether by a day or a mile, your vehicle is ineligible for the extended coverage.
Coverage Limits
The ESA covers the repair or replacement of the High Voltage Battery and Drive Unit (which will both be either manufactured or supplied by Tesla) to correct a failure during the coverage period.
However, the text also specifies that parts external to the Battery and Drive Unit are not covered. This likely includes parts such as the 12V low-voltage battery, charging ports, or high-voltage cabling external to the pack itself.
How to Check Eligibility & Buy
You can check if your VIN is eligible directly in the Tesla App.
Simply open up the App, then navigate to Upgrades > Service Plans, and look for High Voltage Battery and Drive Unit Extended Service Agreement.
If your vehicle is eligible, you will see the option to purchase.
Transferability
A significant benefit of this ESA is peace of mind, but another one is transferability. If you sell your Model 3 or Model Y privately, the remaining coverage will transfer to the new vehicle owner once the transfer is processed by Tesla.
This could be a strong selling point for used vehicles that are just pushing close to the original vehicle battery warranty, which could help alleviate buyer anxiety about battery health.
Other Vehicles & Regions?
Tesla has not mentioned whether its flagship and halo vehicles - the Model S and X, as well as the Cybertruck - will receive this particular Extended Service Agreement.
The Model S and Model X already have access to the comprehensive ESA that covers other vehicle parts, so we expect this one, which covers the powertrain, to arrive sometime in the near future. The Cybertruck remains the standout vehicle without any additional coverage at this time, but this will likely change as the Cybertruck gets older and more vehicles pass the original warranty.
For other regions outside of North America, Tesla previously said that its ESA program would be extended to Europe and Asia-Pacific in the future, so you can look forward to it sometime in 2026.
