Tesla improves its warranty in Australia to five-years and unlimited km

Tesla has updated its new-vehicle warranty coverage in Australia, extending protection to five years with unlimited kilometres for private buyers from January 1, 2026.

Local Tesla execs are claiming it as a global first for the US EV specialist.

The change applies to all new Model 3 and Model Y vehicles delivered in Australia, replacing the previous four-year/80,000km basic vehicle warranty.

Roadside assistance has also been extended to five years from four years, with 24/7 coverage nationwide.

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Under the revised policy, the five-year/unlimited-kilometre warranty covers major vehicle systems including corrosion protection, paint and multimedia components.

Vehicles used for commercial purposes such as ride-share, taxi or delivery services will be covered for five years or 150,000km, whichever comes first.

Tesla Model 3 Long Range Rear-Wheel Drive.
Tesla Model 3 Long Range Rear-Wheel Drive.

Battery and drive unit warranties remain unchanged. Entry-level versions of the Model 3 and Model Y badged simply Rear-Wheel Drive with an LFP battery pack continue to receive eight years or 160,000km of coverage with a minimum 70 per cent battery capacity retention guarantee.

Long-range and performance variants with NMC battery packs retain eight years or 192,000km of coverage under the same capacity threshold.

While the update represents a meaningful improvement for Tesla buyers, it largely brings the brand into line with the broader Australian market rather than setting a new benchmark.

Many mainstream manufacturers already offer five-year, unlimited-kilometre warranties as standard, including Toyota, Ford and Mazda.

Others have gone further, with brands such as Kia and GWM offering up to seven years of coverage, while Mitsubishi, Nissan and MG provide warranties of up to 10 years, albeit subject to servicing and ownership conditions.

In that context, Tesla’s revised warranty positions the brand closer to the market norm but still behind the longest coverage programs currently available to Australian buyers.

The timing of the announcement is also notable, coming after a difficult year for Tesla in Australia. The brand experienced a significant 24.8 per cent downturn in sales during 2025, as increased competition from Chinese and Korean electric vehicle manufacturers placed pressure on pricing and volumes across the EV segment.

It remains the top-selling EV brand however, and the Model Y the country’s biggest selling EV model.

Tesla says the warranty update aligns with local market expectations and is designed to provide additional confidence for buyers entering ownership from 2026 onwards.

“Tesla Australia and New Zealand is thrilled to pioneer Global Firsts that redefine the driving experience for our customers – such as launching Full Self-Driving (Supervised) in the world’s first RHD market in 2025, and now introducing a 5-year, unlimited kilometre new vehicle warranty for 2026. This update aligns with local market expectations and instils lasting confidence in Tesla ownership,” said Thom Drew, Country Director for Australia & New Zealand.

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