Self driving cars as a service are much better deal for the consumer. And they'll be more commoditized[1], same as taxis are, from the consumer perspective. On the other hand, building the car with the highest reliability , and the lowest cost of operation , is a hard challenge.
But: if electric cars are going to win, cars may become mostly batteries on wheels, so a lot of power will go to the battery companies, maybe even to the point they'll build the cars(like Samsung is working on).
And about Tesla: a lot of it's value is about brand. cars as a service kill branding(if everybody transports with a Tesla,it's nothing special) . Maybe that's one reason why they don't want their vehicle as a service.
[1]One thing i'm curious about : is taxi sharing realistic in a world of self-driven cars ? one guess: to make it viable, someone would have to build cars that are both shareable, but offer privacy for each of the passengers. And actually, this doesn't require self-driving to offer great value, so i wonder why aren't we seeing work on this?