Tesla extended the warranty period for Tesla Model S (+ unlimited mileage) to the detriment of the company's earnings

Elon Musk decided to demonstrate that he and his team are so confident in Tesla cars that the warranty period for the car drive can be extended by increasing it 2 times. In addition, the mileage limit has been removed, now the warranty is on cars with any mileage.

The warranty so far applies only to the Tesla Model S (85 kWh), which, according to Mask, is the most popular model of electric vehicle at the moment.
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Previously, the warranty on the Model S was provided for a period of 4 years and 50 thousand miles. The warranty could be extended for an additional 4,000 dollars to 8 years and 100,000 miles. But Elon Musk did not like this situation, and he decided to extend the warranty on the car to a maximum of 8 years without any restrictions on mileage.

“If we truly believe that electric motors are much more reliable than internal combustion engines, with fewer moving parts ... then our warranty policy should reflect this,” said Elon Musk.

He also told investors that such an innovation would have a negative impact on the company's revenues in the short term. But in the long run, all this should have a positive impact on the popularity of the car, on customer confidence in the reliability of the Tesla Model S, and, accordingly, on the company's revenues.

Needless to say, it would be nice if the automakers would take an example from the actions of Mask and his team.

Via theverge