A Tesla Model 3 analyst has changed his mind and admitted he was wrong about the electric car’s profitability. CEO Elon Musk shared a video on his Twitter page Tuesday of Sandy Munro, founder of Detroit-based analyst Munro & Associates, explaining how the electric vehicle beats the rest of the industry in terms of margins.
Admitting that “a lot of crow is being eaten around here,” Munro told Autoline After Hours that his impressions of the car from April were wrong. Munro previously lambasted the Model 3 as badly built and expensive to produce. He changed his mind after completing a thorough analysis of the car’s components, its price, supplier and weight. Overall, he approximated the company is reaching a profit on the car of 30 percent — a figure that nobody else in the electric car industry is meeting, and one that casts doubt on the Wall Street short sellers that claim Tesla may have to return to the markets to raise capital.
This is achieved through a number of cost-saving measures. As an example, the rear view mirror in the Model 3 weighs 0.37 kg and costs $29.48. The BM i3 mirror weighs 0.8 kg and costs $93.46, while the Chevrolet Bolt one weighs 0.91 kg and costs a staggering $164.83. This, Munro explained, is “the magic associated with using components that are already on the car, and you make them work double or triple duty.”
Munro was also impressed by internal components. The 2170 cell that comprises the battery offers 50 percent more power than its predecessor in a package just 20 percent larger — an offering that beats the likes of LG and Samsung for efficiency. Munro also noted the integration of numerous disparate circuit boards, which he described as a “symphony.”
Tesla’s not stopping here, though. While the $35,000 starting price offers value, Tesla plans to roll out a $78,000 performance edition over the coming months to meet demands of consumers that have paid $1,000 to reserve their car, but want something that feels a little faster.
With the Model 3 as a starting point, it seems Tesla is onto a winner.