Amber, a Bay Area startup, helps owners of aged electric vehicles (EVs) with few repair choices once their warranties expire. The early 2023-founded firm launched AmberCare, a Tesla Model Y, 3, S, and X aftermarket warranty solution, on Wednesday.
This service covers drive units and batteries with $40-$120 monthly plans. According to TechCrunch, after filing a claim, Amber works with qualified repair shops to get components and fix the car, including transportation.
Helping Owners with EV Repair Issues
AmberCare highlights the issues of the EV industry as electric cars age and accrue kilometers. EVs need less maintenance than internal combustion cars, yet problems still happen, sometimes requiring specialist components not found in auto repair shops.
EV repair services may demand high costs or recommend scrapping damaged cars. Extended warranty options typically exclude EV-specific components, making the situation worse for limited-run EV customers.
Amber CEO Joe Pak says AmberCare's vertically integrated aftermarket warranty platform addresses these issues. The startup helps repair shops across the country find popular EV components.
Era and Primer Sazze led $3.18 million in seed fundraising for Amber, with Alcove Fund, Virta Ventures, Global Millennial Capital, and Root & Shoot Ventures investing. Amber launched in 10 states and plans to expand to California by year-end, pending regulatory approval.
AmberCare joins an expanding ecosystem of battery recycling and digital maintenance companies for old EVs. Pak targets secondhand EV purchasers who are worried about maintenance expenses and current EV owners who want coverage beyond Tesla's warranty.
Despite its tiny five-person staff, AmberCare has attracted early adopters and wants to connect with the EV community via online forums to attract more clients.
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Beyond repairs, Pak emphasizes transportation, noting that not all tow trucks can handle EVs. Pak stresses that consumers comprehend AmberCare's value proposition and market gap despite extended warranty uncertainty. Amber wants to reassure EV owners about post-warranty repairs and maintenance.
According to J.D. Power, new electric vehicles, including Teslas, have eight-year battery warranties or 100,000 to 150,000 miles, depending on the model.
Pushing Long-term EV Ownership
According to Consumer Reports, EV battery replacement costs may vary from $5,000 to $15,000, even with warranty coverage. According to Chris Sutton, vice president of automotive retail at J.D. Power, just 20% of non-Tesla EV consumers choose extended warranties, compared to 32% of mass market purchases, per Bloomberg.
EVs have fewer mechanical components than internal combustion engine cars, but an extended warranty may be useful for long-term EV owners. Sutton recommends Amber's strategy of developing a network of EV repair suppliers to give consumers confidence in long-term car ownership.
In a separate development, Tesla's Gigafactory in Texas hits a milestone as the facility can now produce 1,000 Cybertrucks every week. Moreover, recent advancements show considerable facility battery cell manufacturing scaling, as per TechTimes.
Tesla is now making Cybertruck-specific cells instead of 4680 for the Model Y as it increases battery cell production to fulfill the demand for its EVs, notably the Cybertruck.
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