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Should you buy the Tesla Pre-Paid Service Plan?

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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.

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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.

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"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 Cybertruck takes a bump from epic failing Dodge Charger

The Cybertruck seemed unharmed by the charging Charger.

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Credit: Hammer_of_something/Reddit

There comes a time in a driver’s life when one is faced with one’s limitations. For the driver of a Dodge Charger, this time came when he lost control and crashed into a Tesla Cybertruck–an absolute epic fail. 

A video of the rather unfortunate incident was shared on the r/TeslaLounge subreddit.

Charging Charger Fails

As could be seen in the video, which was posted on the subreddit by Model Y owner u/Hammer_of_something, a group of teens in a Dodge Charger decided to do some burnouts at a Tesla Supercharger. Unfortunately, the driver of the Charger failed in his burnout or donut attempt, resulting in the mopar sedan going over a curb and bumping a charging Cybertruck.

Ironically, the Dodge Charger seemed to have been parked at a Supercharger stall before its driver decided to perform the failed stunt. This suggests that the vehicle was likely ICE-ing a charging stall before it had its epic fail moment. Amusingly enough, the subreddit member noted that the Cybertruck did not seem like it took any damage at all despite its bump. The Charger, however, seemed like it ran into some trouble after crashing into the truck.

Alleged Aftermath

As per the the r/TeslaLounge subreddit member, the Cybertruck owner came rushing out to his vehicle after the Dodge Charger crashed into it. The Model Y owner then sent over the full video of the incident, which clearly showed the Charger attempting a burnout, failing, and bumping into the Cybertruck. The Cybertruck owner likely appreciated the video, in part because it showed the driver of the Dodge Charger absolutely freaking out after the incident.

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The Cybertruck is not an impregnable vehicle, but it can take bumps pretty well thanks to its thick stainless steel body. Based on this video, it appears that the Cybertruck can even take bumps from a charging Charger, all while chilling and charging at a Supercharger. As for the teens in the Dodge, they likely had to provide a long explanation to authorities after the incident, since the cops were called to the location.

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Anti-Elon Musk group crushes Tesla Model 3 with Sherman tank–with unexpected results

Ironically enough, the group’s video ended up highlighting something very positive for Tesla.

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Credit: Led By Donkeys/X

Anti-Elon Musk protesters and critics tend to show their disdain for the CEO in various ways, but a recent video from political action group Led By Donkeys definitely takes the cake when it comes to creativity.

Ironially enough, the group’s video also ended up highlighting something very positive for Tesla.

Tank vs. Tesla

In its video, Led By Donkeys featured Ken Turner, a 98-year-old veteran who served in the British army during World War II. The veteran stated that Elon Musk, the richest man in the world, is “using his immense power to support the far-right in Europe, and his money comes from Tesla cars.” 

He also noted that he had a message for the Tesla CEO: “We’ve crushed fascism before and we’ll crush it again.” To emphasize his point, the veteran proceeded to drive a Sherman tank over a blue Tesla Model 3 sedan, which, of course, had a plate that read “Fascism.” 

The heavy tank crushed the Model 3’s glass roof and windows, much to the delight of Led By Donkeys’ commenters on its official YouTube channel. But at the end of it all, the aftermath of the anti-Elon Musk demonstration ended up showcasing something positive for the electric vehicle maker.

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Tesla Model 3 Tanks the Tank?

As could be seen from the wreckage of the Tesla Model 3 after its Sherman encounter, only the glass roof and windows of the all-electric sedan were crushed. Looking at the wreckage of the Model 3, it seemed like its doors could still be opened, and everything on its lower section looked intact.

Considering that a standard M4 Sherman weighs about 66,800 to 84,000 pounds, the Model 3 actually weathered the tank’s assault really well. Granted, the vehicle’s suspension height before the political action group’s demonstration suggests that the Model 3’s high voltage battery had been removed beforehand. But even if it hadn’t been taken off, it seemed like the vehicle’s battery would have survived the heavy ordeal without much incident.

This was highlighted in comments from users on social media platform X, many of whom noted that a person in the Model 3 could very well have survived the ordeal with the Sherman. And that, ultimately, just speaks to the safety of Tesla’s vehicles. There is a reason why Teslas consistently rank among the safest cars on the road, after all.

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Tesla Model 3 driver is using FSD to travel to Mt. Everest Base Camp

The ambitious, nearly 4,000-kilometer (2,485-mile) Tesla FSD journey is being livestreamed on Chinese social media.

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Credit: Douyin 老高懂电车

Count on Tesla drivers in China to push Full Self Driving (FSD) as far as it could go. As could be seen in videos posted on Chinese social media, a brave Model 3 owner is currently going on an epic journey from Henan Province to the base camp of Mt. Everest on FSD.

Recent posts from the Model 3 driver suggest that the ambitious destination may be within reach.

Epic FSD Journey

As noted by Tesla owner-enthusiast Aaron Li, the journey from Henan Province to the base camp of Mt. Everest spans almost 4,000 kilometers (2,485 miles). The journey itself is epic, with stunning vistas and roads that require some drivers to bring oxygen canisters with them. The fact that it is being done using FSD makes it extra impressive. 

Based on the videos that have been recently shared, the Model 3 running FSD seems to be nearing the Everest Base Camp. There seems to be a good chance that the Tesla Model 3 may reach its destination this Friday.

Previous Everest Trips

This is not the first time that a Tesla has driven to Mt. Everest’s base camp.  That would be a Model 3 that was driven in September 2020. That vehicle, which went on a long 5,500 km (3,400-mile) journey, was manually driven to its destination. 

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In April 2021, Tesla China announced that it has completed the buildout of 11 Supercharger stations in the picturesque route from Chengdu to Tingri. This route would allow drivers to reach the base camp of Mt. Everest. Sure enough, in July 2022, Tesla China shared a video of two Teslas—a Model X and Model Y—reaching the Everest base camp without any issues. Numerous other Tesla drivers have since taken on the long, picturesque journey.

Check out this Tesla Model Y’s journey to the Mt. Everest base camp in the video below.

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