What Does A Tesla Battery Replacement Really Cost? (2024)

Feb. 09, 2024 11:20 AM ET by Karl Furlong Electric Vehicles / 18 Comments

High prices remain the main barrier to EV adoption, based on a study conducted by S&P Global Mobility late last year.

One obvious way to get around this is to buy a used EV that has already suffered some depreciation, but depending on how old you're willing to go, an expensive battery replacement becomes a concern - but just how costly is a battery replacement?

To answer that question, we will focus on the battery replacement costs for Tesla models. No other company has as many EVs on the road, giving us the most expansive pool of data to draw from. And, because many Teslas have been on the road for over a decade, we can better ascertain battery costs for these models.

We can't talk about battery replacements without getting an idea of when this even becomes a factor for a used Tesla.

Previously, we covered the reasonable life expectancy of a Tesla battery. There is no specific answer, as it depends on factors like charging habits, the temperatures the car is regularly exposed to, and how often you enjoy blasting from 0-60 mph as quickly as possible. Hot conditions and regular DC fast charging can both contribute to accelerated battery degradation.

In 2019, Elon Musk tweeted that "current battery modules should last 300k to 500k miles," a distance equivalent to 1,500 charging cycles. That distance is far beyond what the average owner of a conventional, gas-powered car will travel before an engine overhaul is reasonably expected.

However, Tesla's battery warranty only runs up to 150,000 miles for the Model S and Model X or 120,000 miles for the smaller Model Y/Model 3. Those distance limits give another clue as to when you can expect more significant battery degradation to begin.

Based on the available evidence, a Tesla's battery can be expected to last 100,000 miles quite comfortably, with degradation of around 5% over the first 50,000 miles.

There are a few variables that make it challenging to determine the exact price of a Tesla battery replacement, including:

• The specific Tesla model involved
• The age of the vehicle
• The size of the battery pack
• Labor costs

According to a study published by Recurrent in 2023, EV battery replacements range between roughly $5,000 and $20,000 for all brands. Fortunately, the same report indicated that of around 15,000 EV drivers, the battery failure rate is just 1.5%. Still, that slight chance of a battery replacement out of warranty can be a serious financial setback.

Referring back to Musk's 2019 tweet - which was in reference to the Model 3 - the Tesla boss said replacing the modules will "only cost $5k to $7k." That doesn't refer to the entire battery pack - only the modules.

The Recurrent report found the following receipt for the replacement of a 2020 Model 3's battery:

• Battery: $13,500
• Labor: $2,299.27
• Total: $15,799.27

As you can see, these figures far exceed the module-only replacement costs mentioned by Musk, with labor also substantial - this isn't a hybrid where a DIY battery replacement is possible. At the above costs, this Model 3's battery is around $180/kWh. This is significantly higher than the $139/kWh average quoted by Bloomberg in November 2023, following a period of lithium-ion battery price drops. Newer lithium iron phosphate (LFP) battery packs have a global weighted average of $130/kWh and are seen as crucial to lowering battery costs in the near future.

Naturally, a Model 3 with a 58-kWh battery will cost much less for a replacement than a Model X Plaid with a 100-kWh battery.

JD Power quotes the following battery replacement estimates for Tesla models, including labor:

• Model 3: At least $13,000
• Model S: $13,000-$15,000
• Model X: At least $14,000

For the Model Y, Jerry indicates a 2022 Model Y's battery pack will cost between $10,500 and $12,500.

The same Recurrent report found reports of two Tesla Model S owners being quoted $22,000 for replacing their batteries. This amount was for 2012 and 2013 MY Model S units, indicating that the oldest versions of the electric sedan require the highest battery replacement costs. If you consider that a few 2012-2013 Model S sedans sold for around $20-$25k on Bring A Trailer last year, you can see why a battery replacement has the potential to exceed the vehicle's value.

We found the following other real-world reports on forums like Reddit. These are from Tesla customers who had to replace batteries. Note that in some cases, information such as model year or battery size were not indicated:

• 2018 Model 3 Long Range: $13,093
• Model 3 Long Range: $18,000 (verbal quote)
• Model 3 Long Range: $12,000
• Model S with 90-kWh battery: $19,560
• Model 3 with 75-kWh battery: $16,550 (including $2,299 for labor)
• 2012 Model S: $16,579

While you likely won't need to worry about a battery replacement for your Tesla for a long time, the 2012 Model S story from above shows how risky older models can be. On Reddit, this customer explains how they bought the 2012 Model S with 95,961 miles for $22,000, expecting that the estimated battery life would prevail for many more miles. That wasn't the case, as the customer only got 10,000 miles out of the Tesla before needing to fit a new battery, which was quoted at $16,579 - a whopping 75% of the car's value.

Obtaining consumer accounts of Tesla Model Y battery replacements isn't possible yet, as the crossover simply hasn't been on sale for long enough to warrant battery replacements regularly. The same applies to the Cybertruck, which only recently launched.

Combining real-world examples and estimates from industry experts, it's clear that many variables are at play when determining the battery replacement cost for your Tesla, but you are looking at way over $10k in most cases.

If you're buying a used Tesla, it's possible to check the current level of battery degradation by doing a simple calculation. This can help you decide if a replacement battery is likely. The following process can be applied:

• Make sure the battery is charged to 100%
• Switch on the car and check the estimated range on the instrument panel or touchscreen interface
• Divide the range estimate by the original range and multiply by 100 to determine the battery's current capacity

If the battery drops to under 70% capacity within the warranty period, Tesla will replace it. With that as a gauge, a battery with at least 85% capacity should still have some decent life left in it.

Whether your Tesla is new or used, you can take certain actions to extend the battery lifespan and reduce the rate of degradation:

• Avoid exposing the car to prolonged heat wherever possible by, for example, parking in the shade
• Household charging at Level 1 or Level 2 will take longer, but it's better for the battery than regularly using DC fast charging
• Try to maintain a battery state of charge of between 20% and 80%, where lithium-ion batteries are happiest

In an owner's manual for the Model 3, Tesla advises to "never allow the battery to fully discharge," as this "may result in damage to vehicle components."