Tesla launches Model Y subscription for cheaper out-of-warranty repairs at $100 deductible

Tesla has started offering a subscription service on Model X, Model S, Model 3 and Model Y post-warranty repairs for the first time.

The so-called Extended Service Agreement (ESA) will cover Model Y out-of-warranty repairs for $60/month after the original four-year or 50,000-mile warranty expires.

Previously, the extended Model Y warranty only covered another 24 months or 75,000 miles in total, but the monthly ESA subscription can now run four more years or 100,000 miles, basically evening out the general Model Y warranty duration with that of the battery and drivetrain.

The battery and drive units on Tesla vehicles have always enjoyed an 8-year warranty with either 100,000 or 120,000-mile coverage, depending on the trim, and now the ESA can extend that duration to the rest of the vehicle.

The Extended Service Agreement for the Model 3 costs $50/month, while for the Model S Tesla will charge $125. The most expensive monthly payment for out-of-warranty repairs is, needless to say, for the Model X where Tesla charges $150/month.

All the ESA repair visits are subject to a $100 deductible and don't cover consumables like the 12V battery, or bodywork and damage from accidents, mods, and everyday wear and tear.

Tesla does cover repair or replacements that are "needed to correct a failure of most parts manufactured or supplied by Tesla" and will start sending offers to enroll in the new ESA subscription service in the last three months before the standard 48-month warranty expires.

The out-of-warranty repair subscription doesn't apply to leased vehicles, but later this year, Tesla will start offering those who wish to purchase the vehicle at the end of the lease an option to enroll into the newly minted ESA service.