Tesla has quietly rolled out a new extended battery and drive unit warranty option for owners in the United States and Canada, giving extra peace of mind for two of the most expensive components in an EV. This is the first time Tesla has officially offered paid extended protection for the high-voltage battery and drive system beyond the original factory warranty.
What Exactly Is This New Warranty?
Tesla calls it the High Voltage Battery and Drive Unit Extended Service Agreement (Battery ESA). Unlike Tesla’s existing Extended Service Agreements (which cover general vehicle parts), this plan focuses only on your:
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High-voltage battery pack
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Drive unit (electric motor and associated hardware)
If one of these parts fails under normal use during the extended period, Tesla will repair or replace it — giving owners real protection against a potentially very expensive repair bill.
How Long Does the Coverage Last?
Here’s how the new plan works:
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24 extra months of coverage, or
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30,000 additional miles (48,000 km)
whichever comes first.
The extended protection kicks in immediately after your original Battery & Drive Unit Limited Warranty expires, so there’s no lapse in coverage if you buy before the original warranty runs out.
Depending on your mileage, that can mean up to ~10 years of total battery and drive unit warranty protection.
How Much Does It Cost?
Tesla hasn’t published official pricing on its support sites yet, but app listings and reports show that:
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Around $2,000 USD in the United States
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About C$2,800 in Canada
This is a one-time purchase — not a subscription — and must be paid upfront. It cannot be financed or bundled with your car loan.
Important Details & Fine Print
Before you rush to buy, here are some key terms to know:
Deductible: Every qualifying repair visit has a deductible — roughly $500 USD (about C$700) per visit.
No grace period: You must buy this extended warranty before your original battery warranty expires. If you miss that window — even by a day — you lose the opportunity forever.
Eligibility requirements:
- Only available for Model 3 and Model Y.
- The vehicle must not be leased
- The vehicle must not have a branded or total-loss title
- Only the registered owner can purchase the Battery ESA through the Tesla app
What isn’t covered: Anything outside the high-voltage battery and drive unit (like 12 V battery, electronics, wiring, etc.) is not included.
Why This Matters for Tesla Owners?
Tesla’s standard battery warranty is already one of the strongest in the EV industry (8 years or a model-dependent mileage limit), but it still expires long before many cars stop being daily drivers.
Real-world data shows many Tesla batteries continue performing well well past warranty limits, yet replacement costs for those that fail remain high. By giving an official extended option, Tesla is:
• Backing its confidence in long-term battery durability
• Lowering the financial risk for long-term owners
• Addressing a common ownership concern in a tangible way
For owners who plan to keep their Tesla for years (or sell it privately later), this new extended warranty could add real value — especially since it’s transferable to a new owner if you sell your car before the coverage ends.
Bottom Line
This isn’t just another warranty option — it’s Tesla’s first official extended battery and drive unit plan in North America. For Model 3 and Y owners nearing the end of their original battery warranty, this new Battery ESA provides a meaningful way to protect against the costliest EV repair scenarios.
If you value peace of mind and plan to keep your Tesla long term, definitely check your eligibility in the Tesla app — but don’t delay, because once your original warranty expires, this option goes away.
