Tesla has introduced a new, more flexible and affordable way for owners to get peace of mind after their factory warranty ends. This new service is a monthly subscription that replaces the previous Extended Service Agreement (ESA) in the United States.
The new subscription model makes it more appealing to owners, as it avoids a large upfront payment. This new subscription also offers better coverage terms than before.
Longer Coverage, Better Flexibility
The biggest upgrade in this new format of the ESA is the length of the coverage. The old prepaid ESA was limited to just two years or 25,000 miles beyond the factory warranty, for a total of up to 75,000 miles.
The new monthly program doubles the potential coverage period, offering protection for up to four additional years beyond the factory warranty, or until the vehicle reaches 100,000 miles, whichever comes first. Coming from a basic vehicle warranty of 4 years or 50,000 miles, this is a huge jump up in customer protection.
Pricing & Deductible
The monthly price is simple, but it varies depending on the model. The Model 3 is the most affordable at just $50 per month, while the Model X is the most expensive at $150 per month.
Model 3: $50 / month
Model Y: $60 / month
Model S: $125 / month
Model X: $150 / month
However, Tesla will also charge a $100 deductible for each service visit that covers an included repair, on top of the monthly subscription fee.
Exclusions
The ESA is an exclusionary warranty, meaning it covers the repair or replacement needed to correct a failure of most parts manufactured or supplied by Tesla. However, there are some parts not covered under the ESA, which include:
Issues arising from accidents, modifications, or environmental damage
Essentially, the ESA is designed to cover the components other than the drivetrain. That includes the touchscreen, computers, heat pumps, suspension, or other non-drivetrain electronics that aren’t covered after the 4-year basic warranty.
Tesla vehicles come with an extensive battery and drivetrain warranty that covers these items for up to 8 years. The maximum mileage varies by model. RWD Model 3 and Model Ys are covered for the first 100k miles, while Long Range Model 3s and Ys are covered up to 120k miles. The Model S and Model X are covered for up to 150,000 miles or 8 years.
Eligibility and Sign-Up
Eligibility for the new ESA subscription is pretty clear-cut.
Your vehicle must be within its 4-year / 50,000-mile Basic Vehicle Limited Warranty. Tesla will send customers whose basic warranty is about to expire a notification approximately 3 months before the time-based expiry.
The subscription is not available for leased vehicles or vehicles that were purchased used. Tesla plans to offer eligibility to customers who purchase their vehicle at the end of a lease by the end of 2025, and for used vehicle customers in the near future.
The Cybertruck, due to its relatively newness to the market, doesn’t have access to the ESA quite yet - but it will be coming “in the near future.” For Canada and Mexico in particular, the ESA is not yet available, but Tesla has confirmed plans to bring this subscription to other regions soon.
Subscribing is done through the Tesla App. Tap Upgrades> Service Plans > Extended Service Agreement. Once you review the terms and the monthly fee, you can then hit Subscribe and confirm your payment information.
If the ESA is not visible, your vehicle is not eligible for the subscription.
Payments for the ESA only begin once your original warranty has expired. However, you can sign up at any time, and payments will automatically start when your factory warranty expires.
Other Service Plans
Tesla also offers a Windshield Protection Plan and a Wheel and Tire Protection Plan, if you didn’t already know. Both of these plans are subscription-based and are currently only available in the United States. However, Tesla has indicated that it plans to expand to other regions in the near future.
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Tesla has unveiled its 6-seat Model Y variant in China, known as the Model Y L. This new variant of one of the world’s best-selling vehicles comes with a longer wheelbase, adjusted C-pillar design, and most importantly, a six-seat interior layout.
The vehicle’s specifications have been officially listed in a filing with China’s Ministry of Industry and Information Technology (MIIT), confirming a launch for this fall.
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The addition of a longer wheelbase and a more spacious third row is a fantastic addition for the Model Y’s family utility, and positions this variant as sort of a mini Model X, but let’s compare the sizes to really know how this new Model Y compares to a Model X.
Meet the Model Y L
The defining feature of the new Model Y L is its six-seat configuration. This layout has previously been exclusive to the larger and more expensive Model X. While Tesla has offered the Model Y in a 7-seat configuration before, the third row was much too small to be utilized by anyone but small children.
Comparing Model Y L to the Model X
@xiaoteshushu on X
Let’s compare this upcoming Model Y L to the regular Model Y and the Model X.
Vehicle/Dimension
Wheelbase
Overall Length
Model Y
2,890mm / 113.8 in
4,797mm / 188.9 in
Model Y L
3,040mm / 119.7 in
4,976mm / 195.9 in
Model X
2,965mm / 116.7 in
5,060mm / 199.2 in
The new wheelbase of 3,040mm is a significant stretch from the standard wheelbase, and in fact, is longer than the Model X’s wheelbase of 2,965mm. However, the overall length of the vehicle is 84mm (~3 inches) shorter than the Model X. This means the vehicle sits neatly between the current Model Y and Model X, filling a much-needed gap.
While this Model Y L is slightly smaller than the Model X, it doesn’t necessarily mean that it’s smaller inside. The Model X features a much larger front end than the Model Y, accounting for several inches. When you line up the front wheel base of the Model X with this new Model Y, the vehicles are almost exactly the same length.
Tesla has designed this Model Y to be a bit more compact and efficient than the Model X, and likely much cheaper, while featuring the well-loved design of the new Model Y.
Other Specifications and Price
The MIIT filing also provided a detailed look at some additional specifications. The Model Y L is a dual-motor, AWD variant, so it will likely be more expensive than the current Model Y AWD that’s available in China today. Tesla charges an additional $6,500 USD when upgrading the Model X from a 5-seat configuration to a 6-seat layout, so we may see something similar here.
The extra length has been added behind the C-pillar, resulting in a longer rear profile for the Model Y L. To accompany this, Tesla has added an updated rear spoiler, similar to the one found on Performance variants, but not carbon fiber. There is also a new wheel design to complement the updated look, along with unique Model Y L badging and a new light gold paint option.
In classic Tesla fashion, no Tesla is slow - and the Y L has a 0-100 km/h (0-60mph) time of 5.9s, with a top speed of 217km/h. Alongside an 82.5 kWh LFP battery pack, the Model Y L boasts an impressive CLTC range of 688 km (427 mi).
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Launch & Availability
According to posts from Tesla China on Chinese social media, the new Model Y L is scheduled to launch in the fall of 2025. Its official listing in the MIIT database is essentially the final regulatory step required before sales can begin, which means the launch is really just around the corner. For now, it appears that Tesla intends to launch this vehicle only in China, as no other filings have been made in other regions. However, these could be revealed in the coming months.
The new Model Y L is a huge addition to Tesla’s lineup - one that addresses the Chinese preference for vehicles with longer wheelbases and additional passenger room in a compact SUV package. The question is - will this variant make its way to North America and Europe?
Solving real-world artificial intelligence - whether for autonomous driving, real-world robotics, or advanced reasoning - requires an almost unfathomable amount of computational power. To meet this challenge, Tesla has been developing its own custom AI training hardware while simultaneously purchasing hardware in the open market.
Now, the next-generation Dojo 2 chip has reportedly entered mass production with the world’s largest semiconductor manufacturer, TSMC. While many may consider this a side quest, expanding Tesla’s computing base will be necessary to achieve exascale supercomputing, which will be crucial for all of Tesla’s AI ambitions.
Elon Musk called Dojo 2 “a good computer,” and then followed up with a classic computer performance joke - Dojo 2 can indeed play Crysis at a billion frames per second.
While Tesla has effectively utilized powerful third-party GPUs to train its models to date, the Dojo supercomputer is a ground-up, application-specific solution designed for a single purpose. It will efficiently process massive amounts of video data for training neural networks. The Dojo 2 chip itself is the key that unlocks this potential.
Dojo 2 will train the vision-based neural nets that FSD relies on, allowing Tesla to process video from its massive global fleet of vehicles even faster. As Tesla continues to improve FSD, one of the biggest challenges has been the intake of video for handling difficult edge cases.
Hundreds of thousands of miles of training data may pass by before an edge case is identified and trained on, but it all needs to be analyzed, labeled, and processed, which is key for Dojo 2. Each new useful piece of training data will help Tesla proceed down the march of 9s, making FSD just that little bit better every time.
This process requires massive amounts of compute and training time - but it is an absolute necessity to improve FSD. Of course, this goes beyond just FSD in vehicles. Tesla’s humanoid robot, Optimus, also runs on FSD to navigate and interact with the physical world.
While it may be a custom version of FSD, it remains FSD at its core, which means the same neural nets that analyze the environment and build a 3D map of the world for your car perform the same work for Optimus.
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Custom Approach to AI Hardware
Dojo 2’s power doesn’t just come from raw compute; it comes from a series of architectural choices that make it excel at training FSD and differentiate it from general-purpose hardware, or even other AI-specific hardware.
To this end, Tesla is using TSMC’s new Integrated Fan-Out with Silicon-on-Wafer (InFO-SoW) packaging technology. For massive AI workloads, heat and the speed at which data moves between chips are often the biggest bottlenecks.
This new packaging technique allows for high-bandwidth connections directly between processing dies, which lowers latency and dramatically improves heat dissipation, all key to building massive and dense compute clusters.
Unlike general-purpose chips, Dojo 2 is designed with a custom instruction set, specifically built to train FSD. The cores are specifically made to accelerate the exact mathematical operations, like matrix multiples and systolic arrays, which form the backbone of Tesla’s vision-based neural networks.
By building its own hardware, Tesla can then integrate its own software and compilers directly with the silicon, optimizing for specific workloads and avoiding the performance penalties that can result from using third-party software, such as Nvidia’s CUDA.
The start of Dojo 2 may seem like a side quest for some, but it’s actually a key step for Tesla’s AI technologies that give them an advantage over the competition using off-the-shelf hardware. They’ll need to continue investing in custom hardware to improve FSD at a reasonable pace, rather than the current glacial pace we’ve seen over the last few months.
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