Tesla Motors Offers Top Loaners, Unlimited Battery Warranty

Elon Musk's ambitions range from the ground to outer space and his more terrestrial pursuits just got a little broader, with the announcement on Friday April 26 that his electric car company Tesla Motors will be offering what he calls "the world's best service and warranty program."

The new proposal by Tesla Motors includes two main offerings. One is the use of 85 kilowatt-hour Model S cars as loaner vehicles and the other is an unlimited battery warranty.

"I think our service is OK but not great, and it needs to be great," Musk said on a conference call with reporters. "It's really from the perspective of, 'What's the service and warranty program you wish you could have, from any carmaker?' "

Those who own a Tesla Motors Model S vehicle and need their car fixed up will not only receive a loaner but get a full-fledged Model S 85 kWh.

"This will not be our basic model — they will be state of the art and with all the best features and options," Musk said. "Nor will this eventually become an aging fleet of overused cars. The Model S loaners will be available for immediate purchase at a price that is lower by one percent per month of age and $1 per mile. If you like the service loaner more than your other car, you can just keep it. This ensures that the service fleet is constantly refreshed and gives customers the best optionality."

And if you're in too big a hurry to run your Model S over to the service center, Tesla Motors also offers the added option of a valet service whereby your car is picked up and a loaner is dropped off.

As for the battery warranty, Tesla Motors will replace the battery with a reconditioned one, which the company ensures will be of equal or better quality. The battery remains covered as long as damage wasn't caused as a result of intentional abuse, collision or opening of the battery pack by non-Tesla personnel.

"The intent is to provide complete peace of mind about owning your Model S even if you never read or followed the instructions in the manual," Musk said.

It's certainly good to see Tesla Motors amping up its offerings, especially given a recent dis from Sarah Palin.

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