How Much Does a Tesla Battery Replacement Actually Cost?

How much does it cost to replace a Tesla battery? If the damages aren't covered by a warranty, it could easily cost over $10,000 for a Tesla battery replacement.
Written by Andrew Kidd
Reviewed by Kathleen Flear
Mar 19, 2022
Owning a new
Tesla
may be more expensive than you think—especially if the battery gets damaged in a way that voids your warranty.
The
benefits of owning an electric vehicle
far outweigh the negatives. The ability to charge your vehicle overnight in your own garage or driveway, no emissions, less maintenance, and a far quieter ride than a traditional internal combustion engine vehicle are big selling points. No longer being at the mercy of seemingly arbitrary gasoline prices is a huge plus, too.
But when you’re driving what’s essentially a
giant battery with wheels
, what happens when that battery dies for good? Here's a breakdown for the true cost of replacing a Tesla battery.

Replacing a battery is a costly repair under the wrong circumstances

The true cost of replacing an electric vehicle battery—in this case a Tesla Model 3—can be a lot higher than people might realize. While most automakers offer warranties for their electric vehicle batteries for up to 8 years or 100,000 miles, those not covered by warranty can get very pricey, very quickly.
While a cursory search for battery replacement costs will produce results ranging anywhere between $3,000 and $7,000, the true cost can be much more.
That’s the case for one person’s Tesla Model 3 that underwent a battery replacement in 2020 caused by physical damage to the battery itself, enough to render it inoperable. The culprit? Some kind of large rock—which is something warranties don’t normally cover.

The actual cost to replace a Tesla battery

The cost to replace a Tesla battery depend largely on the warranty coverage.
Warranties can be funny things. If the rock had caused the battery to catch fire, it would be covered by Tesla’s warranty. Instead, it had to be covered by insurance, which is why the manufacturer detailed the cost of replacement in an invoice that the customer would usually not see for warranty work.
The grand total? $16,550—and that’s using a remanufactured Tesla battery. With
global supply chain issues
, component shortages, and the increasing cost of minerals used to manufacture batteries, the cost of a replacement might be even greater two years later. 
Out of pocket, Tesla owners can expect costs of around $10,000 to $13,000 for the battery itself, depending on the model. Of course, there will also be an extra $100 or so for other parts, plus a few extra hundred dollars in labor costs—and that's a lower estimate.
Tesla increased its vehicle prices to address higher costs in 2021, but was able to avoid the bulk of
supply chain issues
by bringing much of its production in-house to the U.S.

Does the cost of batteries make owning an EV out of the question?

It depends on if the damage caused to your battery is covered by the warranty. Again, most automakers offer longer warranty periods for EVs than they do for their gas-powered vehicles. 
When a battery is as expensive to replace as a Tesla’s, potential customers need assurance that they’ll be covered in the event of a catastrophic failure that bricks the vehicle.
Most EV drivers will never have to worry about replacing their car’s batteries. If they do, it will likely be covered by the manufacturer’s warranty.

Save on insurance with Jerry

Tesla vehicles can be costly to insure; Tesla owners sometimes pay more for car insurance due to high repair costs (including the battery). That’s why it pays to shop around for insurance—and Jerry can help with that.
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Mapfre
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Nationwide
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Safeco
Travelers
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