German engineers had found the Model 3 profitable before but now Tesla sceptic Munro & Associates have come to the same conclusion and say Tesla is onto a margin. It could be as much as 30%. This sets a new benchmark for electric cars.
Not unlike the German engineers that had analysed each and every bolt of the Model 3 earlier this year, Munro & Associates also disassembles new cars. For Tesla they had published damning findings this April, saying the EV was not only poorly made but also costly to built.
Now their opinion has changed, reversed in fact. Founder Sandy Munro has found that the Model 3 can be profitable and may even have the potential to make a 30 percent margin. This would set it apart from any other electric vehicle on the market to date.
In an interview with Autoline After Hours, Munro showed himself particularly impressed with the tight integration of circuit board components, which he calls “a symphony of engineering”. He also praised the efficiency of the battery. Munro also pointed to a comprehensive comparison of the parts and materials used by the Model 3, General Motors’ Chevrolet Bolt, and BMW’s i3, in which the Model 3 comes out favourably.
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The findings echo a similar report by German engineers. They had “dissected” the Tesla Model 3 and its battery and found that costs for materials and suppliers come down to no more than 18,000 dollars. They also analysed the battery chemistry in detail, coming to exact and similar results, thus concluding Tesla could be making real money from the Model 3.
The findings come amid Tesla ramping up the Model 3 production rapidly. The latest target had been announced earlier this week: the production rate for Model 3s is planned to be increased to 7,000 vehicles per week by the end of the year and to 10,000 per week by mid 2019 (we reported).