It can. I've had the machine for 2 days and I'm very satisfied.

Yes, there's a tea function. What's more, I can vary the temperature. There are 4 temperature settings depending on the type of tea (green, oolong, black). Unfortunately, the screen doesn't indicate how many degrees Celsius this corresponds to, which is a shame. And I didn't measure each temperature. There's also a hot water button, which just makes hot water.