Tesla has slashed the warranty on its used car in the second round, which could be seen as belt-tightening in anticipation of a third-quarter final financial report.
According to Electric, AutoTomeker previously offered a two- to four-year warranty on used Model S and X vehicles, but now only a one-year or 10,000-mile warranty is offered on the original policy.
On top of the new-car warranty, a used-car warranty is being offered, which benefits anyone who has recently purchased a used vehicle from Tesla. But anyone who wants to acquire a used Tesla in 2016 or later will see a drastic reduction in warranty protection.
Electric Tesla does not disclose why it has changed its used car warranty policy, but noted that it probably is. Buying a used car from an auto manufacturer will lower consumer confidence.
The news comes as Tesla rescinds its bold return policy, which allows new buyers of its electric vehicles to return them for a full refund within seven days. Tesla is expected to report its third-quarter financial position this week. Earlier this month, the company announced that it had delivered 1,00,000 vehicles in the third quarter, breaking its previous record of 112,000 cars delivered. It was the third consecutive quarter of higher-than-expected delivery numbers from Tesla.
Tesla did not immediately respond to a request for comment on its warranty. Earlier this month, Electric Reportedly Tesla has dissolved its public relations department, making it more difficult for the press to make inquiries as there are no longer any dedicated person in the field with such requests.
