Tesla owners are no strangers to bringing their cars in for warranty repairs. In 2023, Tesla paid $1.23 billion in warranty claims. This marked a 53% increase over 2022 and would be the first time the manufacturer exceeded $1 billion in warranty claims. 2024 was even worse, with the carmaker spending $1.45 billion.
On the surface, Tesla's warranties are on par with other electric car makers. All of its vehicles are covered by its Basic Vehicle Limited Warranty for four years or 50,000 miles. The EV battery and drive unit are covered for a minimum of 8 years or 100,000 miles. However, what has frustrated several owners is what isn't covered by warranty -- water damage.
Multiple owners have taken to the Internet to complain that Tesla has refused to pay to replace their warrantied batteries because evidence of water damage was found. Many of these owners claim that the only water exposure was due to rain. However, Tesla refused to budge, leaving its customers on the hook for the replacement cost, amounting to roughly $21,000 in repairs to a rain-damaged battery for one unlucky Tesla owner.
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Water Isn't Covered By Tesla's Warranty
Like other warranties from most car makers, Tesla's lists several limitations and items that are not covered. This includes damage caused by "animal or insect droppings," "tree sap," and even "water," as described in the New Vehicle Limited Warranty. The wording in the warranty regarding water is vague enough to give Tesla an out from covering a variety of repairs.
One Model S owner on Reddit says Tesla refused to pay for the $7,900 replacement of the rear drive unit -- a repair normally covered by the warranty -- because water was found in the high voltage harness cover. Once again, the owner claims the vehicle had never been driven in high water and had only been exposed to rain. The Cybertruck is an even more dramatic example of how vexing water can be for a Tesla vehicle. Simply taking a Cybertruck through a car wash has caused it to stop working in some cases, and may even void the warranty. In fact, the owner's manual for this vehicle discourages using automatic car washes at all.
However, if you must take your Cybertruck through an automatic car wash, the manual lists several precautions that need to be taken to keep it safe from water. These precautions include engaging the Car Wash Mode, avoiding hot water and detergents, checking with the car wash staff to find out if the soap they use has a pH above 13, and not washing in direct sunlight. All this for a truck that's supposed to be bulletproof?
Tesla Would Rather Not Pay For Warranty Repairs
Car makers understandably try to minimize the number of warranty claims they pay out. Ways to accomplish this might include improving the manufacturing process, sourcing better parts, or providing a more thorough maintenance program. Unfortunately, Tesla has been accused of using other ways to avoid paying warranty claims.
For instance, Reuters reports that problems with the steering suspension in the Model S and Model X have been blamed for multiple accidents, but Tesla avoided paying for these repairs by denying the parts were faulty and blaming the problem on the owners. The automaker was sued, but a judge dismissed one of the cases in January 2023, stating that the plaintiff hadn't proven that Tesla knew about the suspension issues in its vehicles. However, internal records uncovered by Reuters -- which were not considered in the court case -- seem to demonstrate that the issue was known by the company as early as 2016.
More recently, a lawsuit filed in California claimed that Tesla has been overestimating odometer mileages in order to end the warranty period prematurely. According to the lawsuit, odometers in some Tesla vehicles may be over-reporting mileage anywhere from 15% to an incredible 117%. It seems Tesla may be using a patented algorithm that uses charging data and driving patterns, instead of wheel rotation, to measure mileage.
The takeaway for potential Tesla owners? Be fully aware of the warranty limitations before purchasing -- and be especially cautious when bringing your Tesla near water or leaving it out in the rain.
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