Tesla has recently introduced a new High Voltage Battery and Drive Unit Extended Service Agreement (ESA) for Model 3 and Model Y owners in the United States and Canada. This new offering provides additional peace of mind for owners once their original battery warranty expires.
Priced at $2,000 USD (or $2,800 CAD), the Battery ESA extends coverage for up to 24 months or 30,000 miles, whichever comes first. It is available for all Model 3 and Model Y variants, as long as the vehicle is still covered by Tesla’s original Battery and Drive Unit Limited Warranty at the time of purchase.
The plan can be found in the Tesla app under “HV Battery/Drive Unit Ext. Service Agreement,” and it promises to protect the vehicle after the original warranty expires. Coverage includes repairs or replacements of the Tesla-made High Voltage Battery and Drive Unit, subject to a $500 deductible per service visit.
Tesla specifies that the plan covers repair or replacement of the High Voltage Battery and Drive Unit, provided by Tesla, needed to correct a failure during the coverage period. Each service visit incurs a $500 deductible, regardless of the number of covered repairs performed.
It is important to note that there is no grace period for purchasing the Battery ESA once the original warranty expires. The plan is currently offered as a one-time purchase with no subscription option available. However, the coverage is transferable to a new owner if the vehicle is sold.
To purchase the HV Battery and Drive Unit ESA in the Tesla app, owners can follow these steps:
1. Open the Tesla app.
2. Tap on Upgrades.
3. Select Service Plans.
4. Tap on High Voltage Battery and Drive Unit Extended Service Agreement. If eligible, there will be an option to purchase.
Tesla also plans to proactively notify owners in the app as they approach the expiration of their original battery warranty.
This new offering aligns with Tesla’s efforts to expand post-warranty coverage options. Earlier this year, the company introduced a monthly extended warranty subscription in the U.S., which was later expanded to Canada. Additionally, Tesla unveiled a new 7-year High-Priced Propulsion-Related Part Warranty for 2026 model year vehicles.
For Model 3 and Model Y owners looking to keep their vehicles long-term, the HV Battery and Drive Unit ESA provides an additional layer of optional protection at a price.