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TheStreet Open House

Tesla Seeks to Pacify Customers with New Service Offerings

Stocks in this article: TSLA

NEW YORK ( TheStreet) -- Continuing with its trend to make the car buying experience better, Tesla Motors (TSLA - Get Report) announced a new service program, building out a fleet of Model S loaner cars, among other amenities for owners.

Tesla said it plans to initially build 100 top-end Model S cars as loaner cars, if a Model S owner has to take their car in for servicing. "These will be fully loaded cars that have all the latest options," CEO Elon Musk said on the call. "If you swap out your car, the car you're getting is probably better than the car you're driving."

The company also said the loaners are available for sale immediately, at a "purchase at a price that is lower by 1% per month of age and $1 per mile." Telsa also said it will allow customers in "most markets" to take home a Tesla Roadster while their car in being repaired for an additional price.

As part of the loaner program, Tesla will valet the loaner car to wherever you are, free of charge.

Tesla is also announcing that its annual services contract is entirely optional, and customers' warranties will remain valid should they choose not to service their car. As part of the warranty program, Tesla said there is an "unconditional warranty for Model S battery, even for user error."

"Except in the cases of a collision, opening of the battery pack by non-Tesla personnel or intentional abuse (lighting the pack on fire with a blowtorch is not covered!), all damage is covered by warranty, including improper maintenance or unintentionally leaving the pack at a low state of charge for years on end. The battery will be replaced at no cost by a factory reconditioned unit with an energy capacity equal to or better than the original pack before the failure occurred," the company said in the blog post.

Shares of Tesla were lower following the announcement, down 1.9% to $51.01.

-- Written by Chris Ciaccia in New York

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