In order to build confidence in the brand, Tesla offered two things that made it stand out. One, it allowed people to drive the car for 7 days and return it no questions asked. Two, Tesla offered 2 to 4 year warranties on used Model S and Model X models.
The company cut the 7 day trial period. Now they’ve reduced the Model S and X warranty.
According to Tesla’s website, they changed the warranty to one year or 10,000 miles over the original warranty.
“Tesla used vehicles are covered by the remainder of 4 years or 50,000 miles left on the Basic Vehicle Limited Warranty. After expiration, the Used Vehicle Limited Warranty provides additional coverage of 1 year or 10,000 miles. If the Basic Vehicle Limited Warranty has already expired, the Used Vehicle Limited Warranty will provide coverage of 1 year or 10,000 miles, starting from your delivery date.”
Warranty work can be expensive, but solid used vehicle warranties are a way to keep used values high and confidence in your vehicles. Nearly every luxury brand offers a certified pre-owned program with an exceptional warranty.
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In some cases, that warranty is better and exceeds the new vehicle warranty if you were to purchase the car new.
It seems odd Tesla is cutting some of this consumer-focused programs at once. But will it move the needle on sales? Unlikely. But it does make you wonder what’s going on in Fremont.