Tesla extends warranty on Model S sedan to eight years

|About: Tesla Motors (TSLA)|By:, SA News Editor

Tesla (NASDAQ:TSLA) says it is increasing the drive unit warranty for its Model S sedan to match that of the battery pack, and will now be covered for eight years and "infinite" miles, applying to all Model S cars produced to date.

TSLA expects the warranty extension to have a "moderately negative" effect on its earnings in the short term.

The news capped a big week for TSLA shares, which started out with a big upgrade from Deutsche Bank and registered four days of all-time highs before gaining 5.5% on the week; a negative review from Consumer Reports barely caused a ripple as far as investors were concerned.