Lifestyle
Should you buy the Tesla Pre-Paid Service Plan?
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 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
Although 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.
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
Nearly 60% of owners are pre-purchasing service plans. Reading through forum threads it seems that owners are doing this:
- Buy shortest term pre-paid service contract
- 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.)
- 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.
Elon Musk
Elon Musk drops a surprise update on Boring Company’s next big dig
Musk says Boring Company could shrink the Austin to San Antonio drive to just minutes.
Elon Musk says The Boring Company is working on what he called “a simple, precursor Hyperloop” tunnel connecting Austin and San Antonio, targeting speeds above 200 mph and cutting a drive that can take up to two and a half hours down to a consistent under 30 minutes. Musk posted the idea on X Sunday, in a reply to a repost of an AI generated video imagining a science fiction future with human colonies on other worlds, which he shared with the line “This is the future we shall bring into being.”
This is the future we shall bring into being pic.twitter.com/8aD0w8MDVc
— Elon Musk (@elonmusk) September 20, 2026
The Boring Company’s own account picked up the idea in the same thread, adding a detail about how the trip would actually work: “Because Loop/Hyperloop is express (i.e. no intermediate stops), one could travel from an Austin parking lot to a favorite San Antonio restaurant in about 30 minutes. As long as they both have Loop stations.” That framing ties the proposed intercity link to the same station model the company already runs in Las Vegas, where riders enter the tunnel network through small, garage style stops rather than one central terminal.
This is not the company’s first run at the Austin to San Antonio corridor. Boring Company floated tunnels between the two cities as far back as 2021, and later competed for a separate San Antonio Loop project tied to the airport before that specific bid stalled. Pitches for tunnels in Chicago, Los Angeles, and a New York to Washington corridor have followed a similar pattern of big announcement without a shovel in the ground.
What is different this time is the balance sheet, especially since The Boring Company closed a 3 billion dollar funding round led by investors in the United Arab Emirates earlier this month at a valuation near 23 billion dollars, giving the tunneling company more capital to chase speculative projects than it had during its earlier Texas pitches. The company is also mid-build on two other intercity systems it has actually broken ground on, inc;luding a Nashville tunnel linking downtown to the airport, where a second boring machine finished commissioning in June, and its Las Vegas network, where the station count keeps climbing on paper faster than tunnels get dug.
That gap between announcement and execution is the reason to treat Sunday’s post as an opening bid rather than a project. A tunnel spanning roughly 80 miles between two metro areas, running at speeds Boring Company has not demonstrated over any real distance, would dwarf anything the company has built. For now, the Austin to San Antonio Hyperloop exists as a caption under an AI generated space video.
Elon Musk
Tesla eyes supply partners for Optimus mass production
Tesla certified three Chinese suppliers for Optimus mass production, signaling its robot timeline is accelerating.
Tesla’s robotics team traveled to Ningbo, in China’s Zhejiang province, on September 16 and spent the following day auditing component suppliers for Optimus, according to a Bloomberg report cited by RobotAIGeek. The visit moved three manufacturers from provisional status to certified mass production partners: Tuopu Group, which handles actuators and chassis components, Ningbo Joyson Electronic, a sensor supplier, and Zhejiang Sanhua Intelligent Controls, which builds thermal management systems. All three already supply parts to Tesla’s electric vehicles, and the audit reportedly came with fresh orders that supply chain reports put at an initial batch of roughly 5,000 units.
Tuopu, Joyson, and Sanhua built their manufacturing base serving the automotive industry, where tolerances and volume requirements are already close to what a mass produced humanoid robot demands. Sanhua in particular has history here. Teslarati reported last October that the company had received a roughly $685 million order for linear actuators tied to Optimus, a volume industry watchers estimated could cover around 180,000 robots once production ramped.
Supply chain reports tied to this week’s audit put Tesla’s near term production goal at about 1,000 Optimus units a week by late September, rising to 2,000 to 2,500 units a week by the end of the year. That pace would put real weight behind the timeline Tesla has been building toward since May, when it wound down Model S and Model X production at Fremont to convert that floor space into a dedicated Optimus line targeting one million units annually. JPMorgan analysts who toured the factory in August confirmed the conversion took roughly four months, a pace Musk has called unprecedented for a facility that size.
New drone video shows Tesla’s Optimus Factory reaching a turning point
Fremont is only the first phase. A second, larger Optimus plant is rising at Gigafactory Texas, where drone footage shared by Joe Tegtmeyer last week showed the structural steel nearing completion on the north end of the building. Tesla has said that facility is meant to eventually support production of up to 10 million units a year, though volume output there is not expected before 2027.
Commercial sales of Optimus are still targeted for the second half of 2027, but production is expected to start well before then. JPMorgan analyst Rajat Gupta has said Tesla’s “Optimus Academy” program, which uses early units to collect real world training data inside Tesla’s own facilities, is expected to be running later this year. Bloomberg Intelligence analyst Ian Ma described the Ningbo audits as “a positive commercialization signal for China’s humanoid supply chain,” noting that sentiment could improve further if the visit leads to confirmed supplier nominations and larger orders. The Solactive China Humanoid Robotics Index rose about 1.4% on the news, though it remains down roughly 30% for the year.
Elon Musk
Tesla primes Cybercabs for 4K streaming and high bandwidth gaming with Starlink integration
Tesla is now shipping Cybercabs from Giga Texas with Starlink hardware built in as standard.
Tesla’s Cybercabs are now leaving Gigafactory Texas with Starlink hardware on the rear hatch in significant numbers, according to drone footage captured Tuesday by longtime Austin drone observer Joe Tegtmeyer. Production at the factory ramped back up after the Labor Day weekend, and his flyover of the outbound lot showed rows of gold Cybercabs alongside Model Y Long Wheelbase units, many carrying the satellite module for the first time as standard equipment rather than a one off retrofit.
Giga Texas today is busy with production coming back up following the long weekend. Of interest today in the outbound lot is the appearance of hundreds of Mode; YL’s and many more Cybercabs and for the 1st time equipped with the Starlink module one the hatch in big numbers.
At… pic.twitter.com/G9yl6s51m4
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) September 8, 2026
Tesla first showed Starlink built into an actual Cybercab on August 10, when the Robotaxi account posted images of a single gold unit with the antenna integrated into the roofline above the taillights and called it the first Cybercab with Starlink integration. That followed a July reveal where Tesla and Starlink jointly posted a cutaway diagram of the antenna placement without a working vehicle to back it up. Ashok Elluswamy, Tesla’s VP of AI software, said at the time that the connection isn’t required for the car to drive itself. It exists mainly for navigation, customer service and keeping tabs on the fleet.
Musk has made a different case in public. During Tesla’s Q2 earnings call, he said the company can’t afford robotaxis stranded in what he called “Bermuda Triangles of lack of cellular connectivity,” and he separately claimed on X that Starlink will eventually reach every Tesla built, calling it the only way to deliver high bandwidth to billions of vehicles. He has also pitched the antenna as an entertainment upgrade, telling riders they would be able to stream 4K video or play games during a trip.
The rollout has moved fast since. Robotaxi service opened to the public in Austin on September 3, and Cybercabs had already been spotted with Starlink hardware in Houston and near Miami International Airport in the weeks before Tuesday’s factory footage showed the module shipping at volume rather than on scattered test units. Whether the satellite link earns its keep is still an open question. Tesla’s unsupervised service currently runs in dense metro geofences in Texas and Florida, markets where cellular coverage is already strong, which is not where the rural dead zones Musk describes tend to show up.

