Tesla Motors hikes warranty on Model S to eight years, infinity miles

Tesla Motors yesterday announced that the warranty on its Model S drive unit would be increased to match the warranty on the unit's battery pack, eight years and infinity miles.

CEO Elon Musk said in a post on the Tesla Motors blog, that the warranty extension would also apply retroactively to all Model S vehicles ever produced.

The company claims its Model S vehicle was its "most popular model by far," and added that there would be no limit to the number of owners within the warranty period.

Calling on the company to put its money where its mouth was, Musk wrote, "If we truly believe that electric motors are fundamentally more reliable than gasoline engines with far fewer moving parts and no oily residue or combustion byproducts to gum up the works, then our warranty policy should reflect that."

''To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers. However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term.''

According to commentators, the move might be Tesla's response to some recent, negative long-term reviews of the Model S, notably from Consumer Reports.

According to Business Insider, Tesla did believe that electric motors were better and in fact thought that it had solved most of the problems that showed up in early production versions of the Model S.

The "infinite mile" language was of course brilliant on Musk's part, as traditional carmakers defined the mileage on their warranties, Business Insider noted.