Tesla Model 3 Critic Turns Bullish
A Detroit-area company that panned the part-by-part quality of Tesla Inc.’s Model 3 electric sedan now believes the car can generate a 30% gross profit margin.
Munro also proclaimed the Model 3’s design too costly to build profitably. But now he estimates a 30% profit margin for the car, considerably better than any other electric car currently in production.
Munro says the Model 3 compares well against such EV rivals as the BMW i3 and Chevrolet Bolt. He says he is most impressed with how well Tesla has integrated the car’s electronics. One example: the Model 3’s auto-dimming inside rearview mirror. He estimates the device costs less than $30, one-third as much as a similar mirror in the BMW i3 and less than one-fifth as much as the Chevy Bolt’s mirror.
Bloomberg News says Munro’s new assessment compares with one done in June by Germany’s Wirtschaftswoche business weekly. It concluded that a Model 3 costs $28,000 to build. Tesla says the car’s starting price will be $35,000, although the cheapest iteration is offers now retails for about $52,000.
Hyundai enters the American market with a new parallel hybrid system that uses lithium-polymer batteries and the same six-speed automatic found in non-hybrid versions of the 2011 Sonata.
The engineers at Munro & Associates have taken a perfectly sound BMW i3 and taken it apart. Completely apart. And they are impressed with what they’ve discovered about how the EV is engineered.
Although the term “continuous improvement” is generally associated with another company, Honda is certainly pursuing that approach, as is evidenced by the Accord, which is now in its ninth generation.