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Tesla finally increases its warranty coverage in Australia

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in Auto News
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Tesla has confirmed it has moved to a five-year, unlimited-kilometre vehicle warranty for all new vehicles delivered from January 1, 2026.

The coverage replaces the electric vehicle (EV) brand’s previous four-year, 80,000km warranty, which was among the shortest in the industry, and covers items like the infotainment system, corrosion protection, and exterior paint.

Tesla’s battery warranty is unchanged, and closely mirrors the offering of myriad rival brands. It’s eight years or 160,000km in entry-level versions of the Model 3 sedan and Model Y SUV, with the Model 3 Long Range RWD and Performance and the Model Y Long Range AWD and Performance offering eight years or 192,000km of coverage.

Tesla guarantees a minimum of 70 per cent battery retention over the warranty period.

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“Tesla Australia & New Zealand is thrilled to pioneer Global Firsts that redefine the driving experience for our customers – such as launching Full Self-Driving (Supervised) in the world’s first RHD market in 2025, and now introducing a five-year, unlimited kilometre new vehicle warranty for 2026,” said Thom Drew, Tesla’s country director for Australia and New Zealand, in a press release late today.

“This update aligns with local market expectations and instils lasting confidence in Tesla ownership.”

With just four years of coverage, Tesla’s old vehicle warranty had it sitting been exotic brands like Aston Martin and mass-market brands like Toyota.

Hyundai was the first auto brand to offer a five-year warranty in Australia, moving from three-year coverage all the way back in 1999.

Its sister brand Kia launched a seven-year, unlimited-kilometre warranty as standard in 2014, spurring others like MG and SsangYong (now KGM) to eventually follow suit.

More recently, 10-year warranties have become more common thanks to brands like Mitsubishi, Nissan and MG, though these are typically conditional on a vehicle being served within the brand’s dealer network.

Tesla first arrived in Australia in 2011 and has grown to become the largest EV brand by sales volume in our market.

That’s despite it offering just two models, with the larger Model S sedan and Model X SUV having been retired in Australia and the Cybertruck pickup still not built in right-hand drive.

However, it has been losing share in Australia’s EV market. Last year, Tesla sales dropped by 24.8 per cent locally, and BYD was just 3569 sales behind it, while the Chinese brand overtook it in EV sales globally.

Nevertheless, the Model Y was still Australia’s best-selling EV overall, with the Model 3 remaining the most popular electric passenger car.

MORE: Explore the Tesla showroom

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