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Tesla Model 3 Teardown Reveals a 'Symphony of Engineering,' 30 Percent Profit Margin (bloomberg.com)

Posted by BeauHD on from the spoke-too-soon dept.

An anonymous reader quotes a report from Bloomberg: Munro & Associates, a small Detroit-area firm that disassembles new cars and analyzes them down to the nuts and bolts, came out in April with damning findings that the Model 3 was poorly built and -- even worse for Tesla's long-term outlook -- costly to build. On that second point, at least, founder Sandy Munro has reversed course. Upon further analysis, his firm has found that the sedan can be profitable. It may even have the potential to make a 30 percent margin, which would be unmatched by any other other battery-powered vehicle. Munro said the systems that impressed him most were the tight integration of circuit board components, which he calls "a symphony of engineering," and the efficiency of the battery developed by Tesla and Panasonic Corp. Munro also pointed to a comprehensive side-by-side comparison of the parts and materials used by the Model 3, General Motors Co.'s Chevrolet Bolt, and BMW AG's i3, in which the Model 3 comes out favorably. The report echoes a teardown published in June by German magazine WirtschaftsWoche, which found that the Model 3 costs about $28,000 to build -- $18,000 for materials and $10,000 for production.

4 of 287 comments (clear)

  1. Re:30% Gross Margin on each car??! by Train0987 · · Score: 4, Funny

    Not to mention Musk's very public nervous breakdown that he's inexplicably broadcasting live to the world.

  2. Tent based production by Anonymous Coward · · Score: 2, Funny

    The big three could learn from lessons from Musk. Having production problems with your line? Just move workers from other plants to the affected plant, set up some tents and do a big chunk of the automated work by hand.

    The big three are living in the past, where you work out production problems before going into production. This tent based production methodology is the future!

  3. Re: That's what he says NOW... by Anonymous Coward · · Score: 5, Funny

    You don't understand. Tesla uses an agile process and keeps improving. If you got an early one it might be bad but just go buy another. The ones they make in the tent are really good ones

  4. Re: That's what he says NOW... by Type44Q · · Score: 4, Funny

    overexaggerating

    Not trying to be disagreeable but it's possible that he was merely exaggerating...