Tesla Improves Vehicle Warranty, Adds Unlimited Mileage in Australia and New Zealand

Effective today, all new Model 3 and Model Y vehicles delivered in Australia and New Zealand, and retroactively for those delivered from January 1, 2026, receive a notable warranty update.

Tesla now provides a 5-year, unlimited-mileage vehicle warranty. This replaces the previous Basic Vehicle Limited Warranty of 4 years or 80,000 km, which had put Tesla at a disadvantage where competitors offer more generous terms.

Catching Up to the Competition

Although this is a global first for Tesla, the change responds to local market dynamics.

In Australia, a 5-year, unlimited-mileage warranty is widely offered by legacy brands such as Hyundai, Ford, Mercedes-Benz, and BMW. Tesla’s direct EV competitors have been especially aggressive with warranty terms:

• BYD: 6 years, 150,000 km

• Kia: 7 years, 150,000 km

• MG: 7 years, unlimited mileage

Tesla’s sales in Australia fell 25% year-over-year in 2025 while BYD’s sales surged, and the old 80,000 km cap — which an average commuter could reach in roughly three years — was no longer a viable strategy.

Unlimited Warranty, Unlimited Confidence

Making mileage unlimited is a clear benefit for high-mileage drivers. Under the former 80,000 km (50,000 miles) limit, regional owners and heavy commuters were effectively disadvantaged. Owners who drive 50,000 km or more per year can now remain covered for the full five years.

The new vehicle warranty covers the entire car, including the MCU, FSD computer, suspension, motors, and ECU — not only the powertrain. The Battery and Drive Unit Warranty remains separate and unchanged.

• RWD: 8 years, 160,000 km

• RWD LR / AWD LR: 8 years, 192,000 km

• Performance: 8 years, 192,000 km

Tesla has been improving warranties in other markets as well. For 2026 models, Tesla extended the propulsion warranty to 7 years. Tesla also began offering extended battery and drive unit warranties for $2,000 USD in North America.

The Fine Print

One notable exception applies: vehicles used for commercial purposes — including Uber, rideshare, delivery, taxi, or rental services — are limited to 150,000 km (93,000 miles) over the five-year period.

That commercial limit is comparable to competitor offerings and is still a substantial improvement over the prior 80,000 km ceiling, giving commercial drivers significantly more coverage before their warranty expires.