Tesla Extends Drive-Unit Warranty On Model S To 8 Years, Says Electric Motors Are More Reliable

PALO ALTO (CBS / AP) — Electric car maker Tesla Motors says it has extended the drive-unit warranty for its Model S sedan to make it good for eight years and unlimited miles.

The drive-unit warranty, now matching that for the battery pack, will apply retroactively to all Model S vehicles and all owners. Tesla CEO Elon Musk said in a blog posting Friday that the move reflects the company’s belief that electric motors are more reliable than gasoline engines.

He wrote that the warranty extension will have “a moderately negative effect” on Tesla’s earnings in the short term as its reserves to cover warranties are increased.

Tesla, based in Palo Alto, is preparing for the launch of a new SUV and a massive new battery plant.

© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.


One Comment

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS San Francisco

Get The New CBS SF Bay Area Local App
Got Our Weather App?

Listen Live