In June 2024, a U.S. District judge progressed a class action lawsuit against Tesla for the potential monopolization of its repair network and restraint of aftermarket parts. Unlike legacy OEMs, Tesla tightly controls its repair network. Vehicle owners claim this has led to extended waiting times and supranormal repair prices. Tesla is also the only OEM that doesn’t abide by the Right to Repair legislation that allows independent repair shops and vehicle owners to repair their cars. 

We’ve spent the last few months exploring the history of Tesla’s repair network, how it's differentiated relative to legacy OEMs, and the potential risks and competitive advantage from its vertically integrated strategy. 

In the nine months to September 2024, Tesla generated over $7.6bn and $500m in Services and Other revenue and gross profit, respectively. The majority of this line item is driven by Tesla Repair services. This learning journey curates our work on the history of Tesla Repair, the advantages of vertical integration, and potential implications if Tesla is required to abide by the Right to Repair Act next year. 

Tesla Repair Network