All existing and future Model S vehicles produced by Tesla Motors will now carry an eight-year, infinite-mile warranty on the battery pack and drive train. The change extends the drive-train warranty from 50,000 miles and four years to match that of the battery.
"In hindsight, this should have been our policy from the beginning of the Model S program," CEO Elon Musk wrote in a blog post. "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."
Consumer Reports, which last year gave a glowing review of the Model S with a score of 99 out of 100, noted some problems with the car during its recent testing, including issues with its door handles, center screen, seat belts, and trunk.
Musk warned investors this warranty change will likely have a negative impact on Tesla's bottom line in the short term. "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," he said.