Notably, this covers battery replacements after the eighth year of ownership. Circa 2020. $150-200/kWh is markedly lower than today.. I don't doubt that Tesla has some guidance from Panasonic about cell cost roadmaps, but it's probably still a gamble on their part.
So far they have built around 1000 Model S vehicles.. so even if their cost projections are off by a factor of two, their total loss would be around $12M (iirc all S built to date are 85 kWh models). I'm also assuming there's no residual value left in the batteries for Tesla; Musk could easily resell the batteries to Solar City for offpeak storage purposes.
Tesla offered a similar replacement plan for the Roadster batteries, I believe it was $12k (paid up front) for a new battery in 5 (?) years. The recent round of
Roadsters with discharged-to-death batteries were ineliglble for the replacement plan .. the 56 kWh battery replacement was billed at $32000 + $8000 labor and taxes. Yow.
I'd like to see Zero offer something similar for their bikes. At least the labor cost should be very small : P
Edit:
Tesla also
covers the S (halfway down the page) with a 4 year, 50k mile warranty standard (similar to BMW 5 series for example). You can extend the warranty to 8 years, 100k miles for $2500 (bumper-to-bumper except tires). This seems like a pretty good deal .. compare to
prices for a BMW 328i.
Tesla also offers prepaid maintenance plans, with home visits.. $1800/4 years for regularly scheduled visits, or $2400/4 years for unlimited visits. When I stopped by a Tesla store last year, the price was $1/mile roundtrip for a Ranger visit. At the time, the nearest Service Center was in Florida .. 1000+ miles round trip = $1000+ for a service visit.. no freaking way. The prepaid service plans would be a pretty easy call for me.. if I was in the market for a $50k+ car.