It seems like every few months, Tesla reveals something new about its award-winning Model S electric car, like battery swapping, or boosts how much it stands behind its product. Last year it beefed up service with unconditional battery warranty, valets, top of the line loaners, and making annual service optional.
In a blog post, Elon Musk, Tesla's CEO, announced that they're further beefing up protection by extending the warranty on the drivetrain of the 85 kWh Model S (the most popular one by far) to match the battery; this means that for 8 years, you get a full warranty that includes an infinite number of miles, with no limits on the number of owners to the EV!
Pretty good, eh? I'm curious to see if any other auto-maker will dare follow Tesla with an infinite mile - though time-limited - warranty like this.
Retroactive tooMusk writes: "Moreover, the warranty extension will apply retroactively to all Model S vehicles ever produced. In hindsight, this should have been our policy from the beginning of the Model S program. If we truly believe that electric motors are fundamentally more reliable than gasoline engines, with far fewer moving parts and no oily residue or combustion byproducts to gum up the works, then our warranty policy should reflect that."
That's the reason why traditional car dealers are fighting Tesla so hard in so many states. 100% electric vehicles simply don't need as much maintenance, and that's where dealers make the most money (not on car sales).
Musks even mentions that he thinks this will have a negative short-term impact on Tesla's profitability, but that it'll be a net positive for the long-term. Now that's the kind of thinking that we need more of in the business world!