Tesla Enhances Vehicle Warranty in Australia and New Zealand, Offering Unlimited Mileage
Starting today, there is a significant warranty update for all new Model 3 and Model Y vehicles delivered in Australia and New Zealand. This change also applies retroactively to vehicles delivered from January 1, 2026. Tesla has implemented...
Effective immediately, all new Model 3 and Model Y vehicles delivered in Australia and New Zealand, as well as those delivered since January 1, 2026, will now come with an enhanced warranty package.
Tesla has introduced a 5-year, unlimited-mileage warranty, replacing the previous 4-year or 80,000 km Basic Vehicle Limited Warranty. This update aligns Tesla with industry standards and addresses competitive pressures in the market where other manufacturers offer more generous warranty terms.
Adapting to Market Trends
While this warranty adjustment represents a global first for Tesla, it primarily responds to local market demands.
In Australia, a 5-year, unlimited-mileage warranty has become the norm, with legacy automakers like Hyundai, Ford, Mercedes-Benz, and BMW offering similar coverage. Notably, Tesla's electric vehicle competitors have been aggressive in their warranty offerings:
- BYD: 6 years, 150,000 km
- Kia: 7 years, 150,000 km
- MG: 7 years, unlimited mileage
Tesla's decision to extend its warranty comes after a 25% decline in sales in Australia in 2025, while BYD experienced a surge in sales. Limiting coverage to 80,000 km was no longer a viable strategy, considering the average commuter could reach this mileage in just three years.
Enhanced Confidence with Unlimited Warranty
The transition to unlimited mileage is a significant benefit for high-mileage drivers. Previously, the 80,000 km limit penalized regional owners or frequent commuters. With the updated warranty, Tesla owners can drive over 50,000 km annually and remain covered for the full five years.
This comprehensive warranty now covers the entire vehicle, including components like the MCU, FSD computer, suspension, motors, and ECU, not just the powertrain. The Battery and Drive Unit Warranty terms remain separate and unchanged.
- RWD: 8 years, 160,000 km
- RWD LR / AWD LR: 8 years, 192,000 km
- Performance: 8 years, 192,000 km
Tesla has also enhanced warranties in other markets. For 2026 models, the propulsion warranty has been extended to 7 years, and extended battery and drive unit warranties are available for $2,000 USD in North America.
Exceptional Coverage with Commercial Use Limit
The new unlimited warranty does not apply to vehicles used for commercial purposes like Uber, rideshare, delivery, taxi, or rental services. For these vehicles, the coverage is capped at 150,000 km over the 5-year period. Despite this limitation, commercial drivers now have more flexibility compared to the previous 80,000 km restriction.
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Tesla has introduced a 5-year, unlimited-mileage warranty, replacing the previous 4-year or 80,000 km Basic Vehicle Limited Warranty. This update aligns Tesla with industry standards and addresses competitive pressures in the market where other manufacturers offer more generous warranty terms.
Adapting to Market Trends
While this warranty adjustment represents a global first for Tesla, it primarily responds to local market demands.
In Australia, a 5-year, unlimited-mileage warranty has become the norm, with legacy automakers like Hyundai, Ford, Mercedes-Benz, and BMW offering similar coverage. Notably, Tesla's electric vehicle competitors have been aggressive in their warranty offerings:
- BYD: 6 years, 150,000 km
- Kia: 7 years, 150,000 km
- MG: 7 years, unlimited mileage
Tesla's decision to extend its warranty comes after a 25% decline in sales in Australia in 2025, while BYD experienced a surge in sales. Limiting coverage to 80,000 km was no longer a viable strategy, considering the average commuter could reach this mileage in just three years.
Enhanced Confidence with Unlimited Warranty
The transition to unlimited mileage is a significant benefit for high-mileage drivers. Previously, the 80,000 km limit penalized regional owners or frequent commuters. With the updated warranty, Tesla owners can drive over 50,000 km annually and remain covered for the full five years.
This comprehensive warranty now covers the entire vehicle, including components like the MCU, FSD computer, suspension, motors, and ECU, not just the powertrain. The Battery and Drive Unit Warranty terms remain separate and unchanged.
- RWD: 8 years, 160,000 km
- RWD LR / AWD LR: 8 years, 192,000 km
- Performance: 8 years, 192,000 km
Tesla has also enhanced warranties in other markets. For 2026 models, the propulsion warranty has been extended to 7 years, and extended battery and drive unit warranties are available for $2,000 USD in North America.
Exceptional Coverage with Commercial Use Limit
The new unlimited warranty does not apply to vehicles used for commercial purposes like Uber, rideshare, delivery, taxi, or rental services. For these vehicles, the coverage is capped at 150,000 km over the 5-year period. Despite this limitation, commercial drivers now have more flexibility compared to the previous 80,000 km restriction.
Stay informed about the latest Tesla news, upcoming features, and software updates by subscribing to our newsletter.
