Beyond Hype
The stock market’s romance with technological disruption has once again collided with an inconvenient reality: even the most visionary companies must eventually be judged by their ability to generate sustainable profits.
Electric-car maker Tesla has reportedly slashed the warranty on its four-year used cars to just one year. The company has not given any explanation for the change.
According to Electrek, the automaker previously offered a two- to a four-year warranty on used Model S and X vehicles, but now only offers a warranty of one year or 10,000 miles over the original policy.
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Tesla China website is also now adjusting the additional warranty period for used cars to one year or 20,000 km. The new warranty terms are significantly less beneficial to consumers buying used EVs directly from Tesla.
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The Elon Musk-owned company also recently cancelled its seven-calendar-day, no-questions-asked, full-refund return policy.
New buyers wishing to return a Tesla vehicle will now have to go through the customer service department, and it’s unclear what types of situations may warrant a full or even partial refund after purchase.
Earlier this month, the company announced that it had delivered 1,39,300 vehicles during the third quarter, smashing its previous record for deliveries, of 1,12,000 cars. It was the third consecutive quarter of better-than-expected delivery numbers from Tesla.
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