Connect with us

Lifestyle

Should you buy the Tesla Pre-Paid Service Plan?

Published

on

After counting down the days until the much anticipated delivery of your Tesla Model S another timer begins –  counting down 60 days from the time of delivery until the Tesla pre-paid service plan offer expires.

Tesla Pre-Paid Service Plan

Tesla Service Plan Choices

MyTesla portal on Teslamotors.com outlines various service plan offerings under the section titled “MODEL S SERVICE SIGN UP.” A standard annual service from Tesla Motors (not pre-paid) is $600 when paying per visit or one can opt to purchase a pre-paid service plan as follows:

  • 4 year plan – Tesla Service for four years/Up to 50,000 miles. Cost: $1,900. This represents a 21% effective discount from the base price.
  • 4 year plan + 4 year extension – Tesla Service for eight years/up to 100,000 miles. Cost: $3,800. This too represents a 21% discount from the base price.

Both plans plans include an annual inspection or an inspection every 12,500 miles. Despite having a service plan option, Tesla still makes a bold statement stating that warranty is not impacted even if you chose to never bring your Model in for service.

Tesla Service Plan Value

Tesla Pre-Paid Service PlanAlthough you’re receiving a 21% discount by pre-paying, that doesn’t take into account the opportunity cost with shelling out the money in advance. Let’s first look at the basic 4 year pre-paid service plan and assume you can earn a relatively risk-free 5% gain on an investment. Pre-paying $1,900 is effectively $2,309 in future value 4 years from now. Paying $600 per year starting a year from now for 4 years adds up to $2,586 in future value. So, accounting for the time value of money, the pre-paid plan is about 11% less expensive given the assumptions above.

Following the same model on an 8 year pre-paid service plan we get a much different picture. A $3,800 pre-pay has a $5,614 future value assuming a 5% annual rate of return. Forgoing the pre-pay option and paying $600 per year as-you-go, has a future value of $5,729 which means you’re only saving 2% with the pre-pay plan.

Also see: Tesla Model S Service Plan – Is it Worth it?

Naturally these results will vary based on the rate of return of your investment and inflation rate at the time. In times of high inflation the pre-pay option is much more attractive. But if you can get a 10% return on your investment (buy TSLA stock!) the pre-pay option is less attractive.

Advertisement

Mileage Adjustment

Tesla service plans are based on an annual mileage of 12,500 miles. At my current rate of driving, I’ll likely reach 32,000 miles within a year which means that my 4 year plan is more like a 2.5 year plan and the 8 year plan is more like a 5 year plan, assuming I need to pay a visit every 12.5k miles. The shorter plans reduces my opportunity cost thus increasing the value of the pre-pay service plan.

For example, if I plan on driving 100K miles in my Model S and purchase the pre-paid service plan, I’m going to pre-pay $3,800 for the 100K miles worth of services which I must perform every 12,500 miles or so. If I pay as I go and pay $600 every 25,000 miles its going to cost me $2,400. Not even considering the time value of money, paying as you go is a clear winner for high mileage drivers.

Poll Results

Tesla Pre-Paid Service Plan Poll

Nearly 60% of owners are pre-purchasing service plans. Reading through forum threads it seems that owners are doing this:

  1. Buy shortest term pre-paid service contract
  2. Decide later on extending that for a longer term (it’s not obvious but if you pre-purchase only the 4 year plan and later want to extend that to the 8 year plan, you could.)
  3. Waiting until 30 days before standard warranty expiration (4 years/50K miles) before deciding/buying extended warranty.

Summary

The 4-year pre-paid service plan, for Model S owners that have annual mileages at or under the 12,500 miles per year, works out to be an approximate 10% savings.

So,what course of action did I take when selecting a Tesla pre-pay service plan, knowing that I will nearly triple the assumed 12,500 annual mileage? The answer, thanks to Tesla service’s recommendation, is nothing. I did nothing.

Advertisement

"Rob's passion is technology and gadgets. An engineer by profession and an executive and founder at several high tech startups Rob has a unique view on technology and some strong opinions. When he's not writing about Tesla

Lifestyle

Tesla Semi futuristic sci-fi acceleration sound will never get old

Videos that capture the Semi moving at speed are most notable due to their sheer cool factor.

Published

on

Credit: Tesla Owners Silicon Valley/X

The Tesla Semi is not yet in mass production, but the company has accumulated over 7.9 million miles across its test fleet. With Tesla using the Semi for its operations, it is no surprise that sightings of the Class 8 all-electric truck have been abounding. 

These sightings from Tesla enthusiasts vary, but those that capture the the Class 8 all-electric truck moving at speed are most notable, possibly due to their sheer cool factor.

Tesla Semi’s Roar

There is something that just stands out with the Semi, particularly on the road. While the Semi does not have the Cybertruck’s brutalist, angular design, it is still very striking because it’s such a massive machine that moves far too quietly for its size. This is, of course, one of the reasons why the vehicle also becomes extra noteworthy when it fires up its electric motors and accelerates.

Take this video from Tesla Owners Silicon Valley, for example, which shows the all-electric hauler accelerating while pulling what appears to be a full load. In these situations, the Tesla Semi actually becomes audible, but unlike traditional diesel-powered truck, the Class 8 all-electric truck “roars” with its own, unique futuristic, sci-fi sound. In such situations, one could feel the Semi’s raw power, which comes from its three independent motors on its rear axles.

Tesla Semi Ramp

Tesla has been promoting the Semi quite a bit as of late, and recent reports have suggested that the company is putting in a lot of effort to prepare the vehicle for its production in Nevada. Tesla’s Careers website has gone live with over 80 Semi-related job openings recently as well, and a recent report has suggested that Tesla has ramped the Semi’s factory workers in Nevada to over 1,000 employees.

Advertisement

The company has even shared an update video of the Semi factory’s progress near Giga Nevada, as well as the design of the vehicle’s new logo. The Semi’s updated logo is quite interesting as it features elements from the Tesla Model 3’s first logo, which was unveiled way back in 2016.

Continue Reading

Lifestyle

Elon Musk jokes he will join Mr Beast’s “100 Men vs 1 Gorilla” challenge

It’s a good sign, if any, that the overworked Musk is becoming a bit more lighthearted again.

Published

on

Credit: Elon Musk/X

Following the first quarter Tesla earnings call, CEO Elon Musk seems to have become a bit more relaxed—relaxed enough to joke about fighting a gorilla with 99 other people, at least.

It’s a good sign, if any, that the overworked Musk is becoming a bit more lighthearted again and not too busy picking fights with politicians on social media.

The Viral 100 Men vs 1 Gorilla Challenge

Over the weekend, a post on social media platform X went viral. The post itself was quite simple, with user @DreamChasnMike stating that he thinks 100 men could beat one gorilla. “Everybody just gotta be dedicated to the sh*t,” the X user joked. The post exploded on the platform, garnering 284 million impressions as of writing.

The silly question also triggered a massive debate about whether 100 men would really stand a chance against a literal gorilla. Some users even lamented that the premise was a sign of male hubris. Nevertheless, the question proved to be a fun topic on X, with some more dedicated users even posting simulated videos of what the “100 Men vs 1 Gorilla Challenge” could look like. 

Mr. Beast and Elon Musk Join In

The premise is quite similar to other viral videos from noted YouTube creator Mr. Beast, so it was no surprise that edited images of Mr. Beast YouTube thumbnails with “100 Men vs a Gorilla” also started spreading on the social media platform. Mr. Beast, who tends to be game to such silly ideas, actually reposted the edited image, joking “Need 100 men to test this, any volunteers?”

Advertisement

In true Elon Musk fashion, the Tesla and SpaceX CEO noted that he would join the challenge. “Sure, what’s the worst that could happen” Musk wrote in his post on X. Musk’s reply triggered quite a few laughs on X, with some stating that the world probably still needs the CEO.

While silly, Musk’s comment and his recent, more frequent posts about his companies’ products like Starlink and Grok have been received well by his supporters. Over the past months, after all, Musk has been very political and quite confrontational on social media. With Musk soon taking a step back from the Department of Government Efficiency’s (DOGE) daily operations, however, it seems like X will soon get a more tempered and lighthearted Elon Musk once more.

Continue Reading

Lifestyle

Possible first glimpse of Tesla “Model 2” affordable car in Fremont Factory

The models that Tesla will release in the coming months will resemble the company’s current lineup.

Published

on

Image Credit: @metgodinwilderness7130/YouTube

During the Q1 earnings call, Tesla VP of Vehicle Engineering Lars Moravy set expectations on the design of the affordable models that the company is expected to launch this 2025. As per the Tesla executive, the models that Tesla will release in the coming months will resemble the company’s current lineup.

Drone footage from the Fremont Factory earlier this month might have provided the EV community its first potential glimpse at Tesla’s affordable cars–fondly dubbed by EV fans and analysts as the “Model 2” or even “Model Q”–or at least their components and overall shape.

The Sighting

Tesla watcher and drone operator Met God in Wilderness, who has been posting aerial videos of the Fremont Factory for years now, recently shared some footage from his drone flyovers this month. While the Fremont Factory was abuzz with activity as usual, a couple of rather strange vehicles were quickly spotted by EV watchers on social media.

During the drone operator’s flyover on the 17th, for example, an unfinished vehicle could be seen parked next to what appeared to be fully-built Model S and Model Y units. What was especially interesting was the vehicle’s roof, which seemed to be slightly narrower than the Model Ys around it. Based on the video, at least, the vehicle seemed to be shaped like a crossover as well.

Footage from the 24th of April also proved quite interesting, with the drone operator capturing footage of another cryptic vehicle. Unlike the mysterious, unfinished, crossover-esque car spotted on the 17th, this particular unit seemed to have a more sloping rear, at least based on the shape of its covering.

Advertisement

What Lars Moravy Said

In Tesla’s Q1 2025 Update Letter, Tesla noted that “plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.” Tesla also noted that the new vehicles will utilize aspects of its next generation and its current platforms. They will also be produced on the same manufacturing lines as its present vehicle lineup, likely the Model Y and Model 3. 

During the earnings call itself, Moravy specifically stated that the new models that would come out in the next months would resemble the company’s current vehicles. They will, however, be affordable. “Models that come out in next months will be built on our lines and will resemble, in form and shape, the cars we currently make. And the key is that they’ll be affordable, and you’ll be able to buy one,” Moravy stated.

Watch the drone operator’s footage from April 17 below.

The drone operator’s footage from April 24 can be viewed below.

Advertisement
Continue Reading

Trending