Tesla has quietly rolled out a new High Voltage Battery and Drive Unit Extended Service Agreement (ESA) for Model 3 and Model Y owners in the U.S. and Canada, offering additional peace of mind once the vehicle’s original battery warranty expires.
Priced at $2,000 USD (or $2,800 CAD), the new Battery ESA extends coverage for up to 24 months or 30,000 miles, whichever comes first. The plan is available to 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.
As shown directly in the Tesla app, the plan is listed as “HV Battery/Drive Unit Ext. Service Agreement” and promises to “protect your vehicle after your Battery and Drive Unit Limited Warranty expires, with the High Voltage Battery and Drive Unit Extended Service Agreement.” Coverage applies for a one-time payment of $2,000 before taxes.
According to Tesla’s website, “Tesla’s High Voltage Battery and Drive Unit Extended Service Agreement (Battery ESA) provides comprehensive protection beyond your vehicle’s original Battery and Drive Unit Limited Warranty period.” The company added that the Battery ESA “covers repairs or replacements of your Tesla-made High Voltage Battery and Drive Unit if they fail during the coverage period, subject to a $500 deductible per service visit.”
What’s covered is fairly straightforward. Tesla states the plan includes “repair or replacement of the High Voltage Battery and Drive Unit, that is manufactured or supplied by Tesla, needed to correct a failure during the coverage period.” Each service visit carries a $500 deductible, even if multiple covered repairs are performed.
There’s also an important caveat for owners on the fence: there is no grace period. Once your Battery and Drive Unit Limited Warranty expires, your vehicle is no longer eligible to purchase the Battery ESA. Currently, the plan is only offered as a one-time purchase, with no subscription option available. The upside is that the Battery ESA is transferable; any unused portion of coverage will carry over to a new owner once a vehicle ownership transfer is completed.
Here’s how you can purchase the HV Battery and Drive Unit ESA in the Tesla app:
Tesla says it will also proactively notify owners in the app as they near the expiration of their original battery warranty.
This new offering builds on Tesla’s broader push to expand post-warranty coverage options. Earlier this summer, the company introduced a monthly extended warranty subscription in the U.S., which later expanded to Canada. In September, Tesla also unveiled a new 7-year High-Priced Propulsion-Related Part Warranty, available starting with 2026 model year vehicles.
For Model 3 and Model Y owners planning to keep their vehicles long-term, the new HV Battery and Drive Unit ESA adds another layer of optional protection — at a price.
