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.
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.