agent Entrepreneur logo
MenuMENU
SearchSEARCH

Tesla Boosts Model S Sedan’s Warranty Coverage After Criticism

Electric carmaker Tesla Motors Inc TSLA.O said on Friday it had boosted warranty coverage on its Model S sedan, a week after an influential U.S. consumer magazine highlighted problems with the $70,000-plus vehicle, reported Reuters. Tesla announced that the drive unit warranty on the Model S has been increased to match that of the battery ... Read More »

August 18, 2014
2 min to read


Electric carmaker Tesla Motors Inc TSLA.O said on Friday it had boosted warranty coverage on its Model S sedan, a week after an influential U.S. consumer magazine highlighted problems with the $70,000-plus vehicle, reported Reuters.

Tesla announced that the drive unit warranty on the Model S has been increased to match that of the battery pack, bringing its coverage to eight years and “infinite” miles.

Ad Loading...

The warranty extension will apply retroactively to all Model S cars produced since 2012, the company said on its blog, and will have a “moderately negative” effect on its earnings in the short term.

Consumer Reports last week criticized the Model S for having “more than its share of problems,” including a variety of electrical issues.

The magazine last year gave the Model S top marks for its “smoothness, effortless glide and clever, elegant simplicity.” It purchased the car in January 2013 for $89,650. Tesla fixed the problems on the magazine’s Model S under warranty.

In a blog post on Friday, Tesla Chief Executive Elon Musk said of the longer warranty, “in hindsight, this should have been our policy from the beginning of the Model S program.”

If the company believes that electric motors are more reliable than the gasoline engines used in most conventional cars, he added, “then our warranty policy should reflect that.”

Ad Loading...

Many current conventional gasoline-powered cars have a standard three-year/36,000-mile warranty.

Korean automaker Hyundai Motor Co, its affiliate Kia Motors Corp and Japanese automaker Mitsubishi Motors Corp offer U.S. buyers some of the longest new-vehicle warranties, including standard vehicle coverage for five years or 60,000 miles and powertrain coverage for 10 years or 100,000 miles.

Tesla, which has been trading at or near its record high, closed at $262.01 on Friday on the Nasdaq and was down slightly in after-hours.

More Industry

Photo of MINI nameplate on the hood of a white MINI Cooper
Industryby Hannah MitchellJuly 23, 2026

Autos More Appealing

Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.

Read More →
red car parked in front of a sunset, The Used Market Divide, Agent Entrepreneur
Industryby Lauren LawrenceJuly 23, 2026

Used EVs Defy Overall Market

While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.

Read More →
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Industryby Lauren LawrenceJuly 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Ad Loading...
Photo of a retriever dog looking out of an open SUV window with a yellow Peugeot headrest on the top of the window below it
Industryby Hannah MitchellJuly 16, 2026

Gone to the Dogs

A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.

Read More →
Aerial shot of a car dealership
Industryby Hannah MitchellJuly 13, 2026

OEM Poll Sees Industry Evolution

Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.

Read More →
Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
Ad Loading...
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Ad Loading...
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
Ad Loading...