Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk announced on the company’s blog that The Tesla Model S drive unit warranty has been increased to match that of the battery pack. Tesla Motors 85 kWh Model S now has 8 year, infinite mile warranty on both the battery pack and drivetrain.
Tesla Motors Inc CEO also said that the warranty applies retroactively to all Model S vehicles ever produced. That means existing and new owners benefit from this new warrant. He said that should have been the policy from the beginning for the Model S.
More over, this new warranty or generous gesture from Tesla Motors CEO applies to secondary owners as well so them too can benefit from this warrant extension.
The Model S used to have 4 years, 50,000 mile warranty which could be extended to 8 years, 100,000 miles for about $4,000 extra fee.
This new warranty by Tesla Motors Inc (NASDAQ:TSLA) could be a move against the recent criticism that the Model S has few minor problems even though it did get many good reviews. However, Elon Musk, the CEO and founder of Tesla Motors Inc said in the blog post:
To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers. However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.
The electric car manufacturer’s CEO Elon Musk was spotted at the DEFCON apparently to hire hackers who would be willing to help the company find security flaws in the software that controls its vehicles.