Tesla CEO Elon Musk officially announced the "Infinite Mile Warranty" for the Tesla Model S on August 15.

"The Tesla Model S drive unit warranty has been increased to match that of the battery pack. That means the 85 kWh Model S, our most popular model by far, now has an 8 year, infinite mile warranty on both the battery pack and drive unit. There is also no limit on the number of owners during the warranty period," the official press release stated.

Musk believes that this kind of warranty arrangement is a reflection of their fundamental vision of producing more reliable and environment-friendly vehicles.

He also recognized the possible temporary downside of the move.

Musk explained, "To investors in Tesla, I must acknowledge that this will have a moderately negative effect on Tesla earnings in the short term, as our warranty reserves will necessarily have to increase above current levels. This is amplified by the fact that we are doing so retroactively, not just for new customers.

Continuing he argued, "However, by doing the right thing for Tesla vehicle owners at this early stage of our company, I am confident that it will work out well in the long term."

Originally, Model S cars carry a four-year 50K limited warranty deal that can be extended to eight years and 100K with an additional cost of $4,000.

Reuters reported that the infinite warranty was Tesla's response to Consumer Reports, a U.S. magazine that featured a number of problems with the $70,000 plus car.

Meanwhile, the company has been working on the supercharging stations around the prime cities where Tesla Model S are made available.

In July, the electric carmaker announced that their Supercharging network is now the world's largest fastest-charging network surpassing more than 1 GWh of energy supplied to Model S vehicles in just one month.

At the moment, Supercharger routes span across Los Angeles to New York.

Tesla's goal is that by the end of 2015, 98 percent of the country's population will be within 100 miles from a Supercharger station.

Tesla has also instituted two major charging stations in London: One at the Hyatt Regency London in Central London and the other at Royal Victoria Docks.