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Munro & Associates is one of the well-known critics of the Tesla Model 3, especially after testing and beginning its teardown of the electric car’s early production model. However, the firm’s president, Sandy Munro, retracted his negative views on the Tesla Model 3 after finishing a teardown analysis, adding that the vehicle is highly profitable.
In an interview with Autoline Network released via YouTube on Monday, Munro admitted that he initially thought that the Tesla Model 3 had “the worst fit and finishes” he saw for decades. But CleanTechnica reported that Munro was not alone to have this sentiment, especially noting that the firm got an earlier unit of the Tesla Model 3.
It is important to note that the Tesla Model 3 was released to the market in an unconventional way. Normally, car makers perfect the structure of a certain car model first before they start selling or delivering it. But Elon Musk’s Tesla had a different approach.
Tesla takes orders for the Tesla Model 3 and then ships them by batches. The company has had many obstacles faced in the production of this vehicle. There have also been several criticisms of the build, performance, and software aspect of the car. But the Tesla Model 3’s unconventional manner of release allowed the company to issue over-the-air updates and structural changes along the way.
Meanwhile, Munro added that he “was very impressed” in driving the Tesla Model 3 — a testing phase that was also previously covered by Autoline. “It definitely has a nice heavy feel. It hugs the road. It’s like being on rails most of the time,” Munro commented.
Then when the interview focused on the electronics aspect of the Tesla Model 3, Munro obviously became even more impressed. “When you look at the electronics that are in this car, the density, is out of this world. The layouts are wonderful,” Munro said. “The fact that they’ve integrated different disparate circuit boards … this is like a symphony of engineering.”
When asked for his conclusion for the Tesla Model 3 analysis, Munro said with a smile, “The Model 3 is profitable … by over 30 percent.” Munro further explained that the Tesla Model 3 is the only product in the electric car industry that is pegged at that level of profitability.
Munro & Associates’ estimation of profitability is not far from an analysis published by the German magazine WirtschaftsWoche (via Bloomberg) last March. This report concluded that the Model 3 parts are valued at $18,000 while production cost plays around $20,000. The Tesla Model 3 is currently sold at $50,000 per unit.
