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.