Why We Created an Extended Warranty for the Tesla/EV Community
07/10/2023 / Milad Davoodi
Our team at Xcelerate think it is very important that everyone understands why we created XCare EV Protection.
Xcelerate’s roots go back to the early days of Tesla. Our CEO, KJ Gimbel, has been working directly with Tesla since 2012 as a 3rd party lessor, and putting some of the first Tesla leases into the hands of customers. Before joining Xcelerate, our COO, Milad Davoodi, was former leadership at Tesla since 2011 and helped create the global Used Vehicle and Trade-in Program for the company. Most of our staff are now former Tesla employees still fighting to drive EV adoption at all levels. It’s safe to say, we are a group of electric vehicle enthusiasts that truly believe in this type of transportation future. We have had a very close eye on vehicle/technology changes, consumer stories, used vehicle valuation, and used EV inventory in the independent market. In 2018-2019 when we were developing XCare, we saw thousands of used Teslas end up in dealer lots. We were seeing a growing amount of people that felt like they either needed to sell their car as they were coming to the end of their factory warranty, or were afraid of buying a used Tesla due to lack of warranty options available. To us, this was dangerous as this type of thinking could affect resale value, and possibly, hurt the brand overall.
Our goal was simple - create a product that mirrors Tesla’s Extended Service Agreement (ESA) but has greater variability in options and coverage.
We created XCare to give a “value add” option to owners and dealers that are trying to buy, resell, or stay in their current electric vehicles. Our effort was to make this available to everyone and as many vehicles as we can, to strengthen the resale value, but also be a sign of maturity in the EV space. This is not your traditional “extended warranty” product that you may have heard horror stories about. We have been working for years to make sure that we had partners that were the leaders in this industry, created a contract that was specific to the components of electric vehicles, and built a claims process that was designed around the direct-to-consumer service process such as Tesla, Rivian, and Lucid, while also maintaining the familiarity of dealing with 3rd party service centers for all other EVs.
XCare was designed from the ground up with EV owner’s intentions in mind.
As a team, we look at what the ideal customer experience should be, and work backwards from there. We are all electric vehicle owners ourselves, and have been for many years. Transparency was key. Having all of our term options and pricing available so the customer could make the best decision, was essential to serving our customers the way that we would want to be served. One of the most rewarding conversations we have is when a future owner calls us and says, “I really wanted to buy a Tesla, but I could only afford a used option and was not comfortable with it being out of warranty. Thanks to XCare, I can easily shop for a used EV in my price range.” Our main mission is to further drive electric car adoption and make it easier for people to drive them. Some people can disagree with purchasing a warranty and may choose to gamble on the cost of repairs, but others think differently. Although not all vehicles or their service issues are the same, - those who have stretched to purchase a $25k-$45k used Tesla/EV, one $1k-$2k in repair cost , may break the bank for them, and they could possibly lose trust in EVs for the future.
We, too, want to “Xcelerate” the world towards sustainable transport. We created our XCare electric car extended warranty product to help people make that decision to jump into an EV by giving them the peace of mind they need.
Thank you to the thousands of owners that have XCare coverage on their EVs. We are proud to have now paid millions in claims to cover service costs. We appreciate the feedback to better our product/experience as we progress. We ask you to please be vocal about our product to as many people as possible and please share your stories with our community!