Tesla’s 8-Year Model S Warranty Will Crimp Company Profit
This article is for subscribers only.
Tesla Motors Inc. is expanding the warranty for its electric Model S sedan by offering unlimited mileage for the drive unit and battery pack for eight years to ease reliability concerns, a move that will crimp profit.
The “drive-unit warranty has been increased to match that of the battery pack,” Elon Musk, Tesla’s chief executive officer and co-founder, said yesterday on the company’s website. “There is also no limit on the number of owners during the warranty period.”