Sunita Somvanshi
Tesla has expanded its monthly Extended Service Agreement (ESA) program to Canada. This move gives Tesla owners a new way to extend their car protection after the original warranty ends, without having to pay a large sum upfront.
The monthly plan mirrors what Tesla launched in the United States earlier this year. Owners can now pay month-to-month instead of committing to a lump-sum payment for extended coverage.
The ESA covers Tesla vehicles for up to 48 months or 80,000 kilometers, whichever comes first, beyond the Basic Vehicle Limited Warranty. Monthly prices vary by model: Model 3 costs $70 CAD, Model Y $80 CAD, Model S $170 CAD, and Model X $205 CAD. The Cybertruck is not eligible yet.
For a Model Y owner keeping the subscription for the full term, the maximum payment would reach $3,840 CAD. Each service visit under this plan carries a $135 CAD deductible.
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The coverage focuses on repairing or replacing most Tesla-manufactured parts that fail during normal use. However, several items are not covered, including the 12V battery, bodywork, paint damage, and routine maintenance parts like brake pads and wiper blades. The high-voltage battery and drive unit have their own separate warranty and are also excluded from the ESA.
Signing up is straightforward through the Tesla app. Owners can navigate to Upgrades > Service Plans > Extended Service Agreement, review the terms, and subscribe. The plan can be canceled anytime, with coverage remaining active until the end of the current billing cycle. However, once canceled, customers cannot re-enroll.
This subscription model provides flexibility that traditional extended warranties typically lack. For Canadian Tesla owners, especially those in areas with limited access to Service Centers, this offers peace of mind that repairs will be handled by certified technicians using genuine parts.
The program launch comes amid news of Tesla insider Tom Zhu selling over 82% of his Tesla holdings since 2023. Meanwhile, CEO Elon Musk has warned short sellers they would be “obliterated” if Tesla achieves full autonomy at scale.
For Tesla owners nearing the end of their basic warranty, this new monthly ESA provides a way to budget for potential repairs without committing to a large one-time payment.
