That would mean I think it must have been a misunderstanding or a very misinformed Tesla employee as they've never stated anything like that. They wouldn't have any sales if that were close to being true which fortunately it isn't. The warranty doesn't cover degradation (which is normal) but is an 8 year unlimited milage (on 85 kWh pack with the smaller packs also having 8 year warranties but not unlimited miles). It would certainly cover a situation like you stated about with a 25% decrease per year. Tesla has said in the past that they expect the pack to have around 70% capacity after 8 years I think (something like that) but many Roadster owners are seeing about a 1-2% decrease in range a year at most. There are many factors involved though (number of range chargers, number of cycles on the pack, miles driven....etc). I've read a lot and searched but didn't find these answers, if anyone knows, or has a link to an appropriate thread I'd appreciate it! First, what is the expected battery degradation over 8 years of ownership? IE if we are expecting 260-300 miles per charge in year 1, how much less should we expect in years 2-8? How does the 8 year battery warranty cover this degradation? Is there an expected %age that is or isn't covered by the warranty? If I'm only getting 100 miles by year 3, would that be covered by warranty? And lastly, after 8 years, what's it going