Recurrent reports that replacing the battery of a Tesla Model 3 costs about $15,800. Compared to other brands like Nissan, Chevrolet, and Hyundai, Tesla’s battery costs are significantly higher — in comparison, the battery cost for a Hyundai Ioniq is set at about $2,850. EV battery technology is getting better, more efficient, and cheaper; Bloomberg reports that by 2030, the cost is expected to drop to $100/kWh and possibly as low as $58/kWh. However, new supply chain problems affecting lithium and other elements used in batteries could pause the downward price trend.
Tesla’s official limited warranty covers the battery replacement for a Model 3 Rear-Wheel Drive for eight years or 100,000 miles, whichever happens first, with a “minimum of 70% retention capacity over the warranty period.” For a Model 3 Long Range version, the warranty is for eight years or 120,000 miles. Tesla may choose to repair the damaged battery or replace it with a new one when executing the warranty. Take note, however, that the automaker warns the replacement may not restore the battery to a “like new” condition. Used Teslas bought through the Tesla inventory have battery replacement covered for four years or 50,000 miles with the original warranty and an addition of one year or 10,000 miles.
The Tesla warranty only covers malfunctions or damages caused by fabrication. If the battery is damaged due to collisions, exposure to fire, water, unauthorized services, improper maintenance, earthquake, windstorm, off-road driving, and several other events, the owner will face the cost. Many drivers who find themselves facing an EV battery replacement that isn’t covered by the warranty are choosing alternative methods which can cut costs dramatically.