The Car and Truck Fleet and Leasing Management Magazine

Tesla Extends Warranty, Calif. Preps Gigafactory Incentives

August 19, 2014

Photo courtesy of Tesla Motors.
Photo courtesy of Tesla Motors.

Tesla Motors has extended the warranty covering its drive unit to match the warranty offered for the battery pack on its Model S, the company announced.

Tesla will now offer an infinite mile or eight year warranty for the drive unit. The drive unit in the Model S previously came with a four year, 50,000-mile warranty. Tesla offered owners the option to extend the warranty to an eight-year warranty for an additional $4,000.

This extended drive unit warranty comes a week after an unfavorable review from Consumer Reports. The report pointed out some of the Model S’s "quirks," such as front truck lids not responding and the center screen going blank. In July, returned its test car and said the company needs to "iron out its quality problems."

In other news, competition for the host state for Tesla's Gigafactory is heating up. Arizona, Nevada, New Mexico and California are all in the running for the battery manufacturing site.

Originally, Tesla officials didn't include California as a contender due to strict environmental regulations. However, California lawmakers are now trying to exempt Tesla from some of the regulations in hopes of bringing the $5 billion factory to the state, according to the Los Angeles Times. The report stated Sen. Ted Gaines proposed a number of tax breaks equaling up to $500 million. California legislators hope to have the bill passed before the end of session on Aug. 28. In the past, California has been known to lose manufacturing jobs to other states with lower taxes.

Tesla had broken ground on one of its potential site locations in Reno, Nevada in July. Nevada is a strong contender due to its no-tax reputation.

Texas legislators are pushing a bill allowing Tesla to sell directly to consumers and qualify the company for a new EV rebate program. However, Tesla's CEO Elon Musk attempted the same feat last year with no luck, according to the Wall Street Journal.

Tesla will hire an estimated 6,500 full-time employees to produce the next-gen lithium-ion battery.

Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

Sponsored by

Founded in 1954, the Car and Truck Renting and Leasing Association (CATRALA) had as its credit "To promote sound public policy with respect to the leasing and renting of motor vehicles without drivers."

Read more

Alternative Fuel Locator

Use the Alternative Fuel Locator to find stations near you.

Launch Alternative Fuel Locator

Up Next

More From The World's Largest Fleet Publisher