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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.

5 of 287 comments (clear)

  1. That's what he says NOW... by squiggleslash · · Score: 1, Troll

    ...but it's quite possible Munro just didn't want to be baselessly accused of pedophilia for the crime of criticizing his holy Muskness.

    --
    You are not alone. This is not normal. None of this is normal.
    1. Re:That's what he says NOW... by Train0987 · · Score: 1, Troll

      " so the lion share of the maintenance/repair work will likely be done by Tesla"

      Which is another reason not to own a Tesla. Who pays the tow fee for the mostly several-hundred mile trek to a regional service center?

  2. Wonder what that costs by p51d007 · · Score: 1, Troll

    Sounds like he was paid off.

  3. 30% Gross Margin on each car??! by Anonymous Coward · · Score: 0, Troll

    Then why isn't Tesla profitable?

    And remember people, there's a difference between gross margins on each car and operating margins for the company.

    If you don't know the difference and their context, then you have no business commenting on Tesla's financial health.

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

      The only similarity between Tesla and Amazon is that both are headed by egomaniacal billionaires. The companies have nothing more in common besides that and its quite telling how the Tesla cult has to go that deep to find a positive analogue.