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Analysis: Why Tesla’s In-House Body Shops Are Noteworthy

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Oct. 5, 2018—According to a report by thestreet.com, Tesla is finding early success in its in-house body shop initiative, and that could have an impact on total cost of ownership as the company scales to more customers.

Tesla has quietly been rolling out its own body shops recently. In Tesla’s case, being able to repair vehicles’ body damage is a crucial piece of the transition to becoming a mainstream manufacturer that can compete with more established competitors.

Another reason why body shops are a big deal for Tesla: the company's Model S is believed to be the most expensive car model to insure. A vehicle collision can cost five figures, a number driven by the cars’ aluminum construction, limited manufacturer-approved shops, and the fact that parts are currently scarce.

Recently, Tesla has opened up (or is about to open up) company-owned collision repair centers in nine different cities across the country.

According to thestreet.com, Tesla executive Elon Musk believes that his company’s ability to specialize in just three car models is a main reason why Tesla service centers should be able to turn around body repairs quicker than outside repair shops.

 

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