> Tesla’s vertical integration of service centers has an interesting side effect - recalls and repairs are pretty cheap
This is assuming that Tesla's centrally managed monolithic dealer/service network will be run more efficiently than the distributed and competitive dealer networks typical of other car companies.
That assumption runs counter to typical economic thinking that competitive market based solutions will be more efficient.
They are awarded on territorial basis to guarantee some monopoly within a geographic market, and the incentive system (inventory requirements, bonuses) benefits current owners opening in new markets rather than new players stepping in.
Their business model also relies on frequent customer visits for repairs/maintenance and subsequent upsell, so their incentives are somewhat misaligned with manufacturer's. So even if Tesla did a complete 180 on their service centers and started selling dealerships, they might not have many takers considering their maintenance needs and potential revenue https://www.tesla.com/support/maintenance-plans
Lastly, while a network of independent mechanic shops might be an indicator of competitive markets working properly, that market is far from transparent due to information asymmetry between the service buyer and the service provider.
This is assuming that Tesla's centrally managed monolithic dealer/service network will be run more efficiently than the distributed and competitive dealer networks typical of other car companies.
That assumption runs counter to typical economic thinking that competitive market based solutions will be more efficient.