Part 4/8:
Tesla’s ownership of collision repair centers enables a continuous feedback loop that benefits both product development and operational efficiency. When repair technicians work on a Tesla, they can send detailed data back to Tesla engineers, allowing continuous improvements in vehicle safety, reducing future damage and repair costs. This closed-loop system enhances the vehicle's safety features and can lead to better insurance premiums over time.
Furthermore, by controlling the repair process, Tesla improves profit margins—repair shops usually add hefty markup when working with third-party insurance companies. Since Tesla acts as its own insurer and repair provider, it can maintain higher margins, which is vital for the business model’s scalability.