The first time I heard the phrase "ruinous competition" used this way, I nearly jumped out of my chair.
But this is why the OP mentions the challenge that Tesla will have in providing local repair service. If it can crack that problem, it may open the door to manufacturer shops of other car models as well.
There is a huge imbalance of power in this relationship. Since their creation the statutes have been captured by special interest just like every other regulation.