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The engineering science firm Munro & Associates made waves recently when information technology tore the new Tesla Model 3 apart both literally and figuratively. The visitor dismantles and studies cars and other products, and CEO Sandy Munro was very vocal about his feelings regarding Tesla's newest electric vehicle. He said the build quality was like a Kia from the 90s. Now, the visitor has completed its analysis. While Munro'south opinion on the fit and finish hasn't changed, he has expressed downright daze that the Model 3 is highly profitable for Tesla.

The initial Munro & Associates analysis of the Model 3 called out issues similar clunky door handles and windows that bounce around inside the door panels. The exterior panels of the Model 3 also drew Munro's ire. The gaps are substantially larger than the more expensive Teslas — even conventional cars that price thousands less look more than polished on the outside, according to Munro.

To say Munro & Associates was skeptical of the Model iii early would be an understatement. Now, Sandy Munro says he's "eating crow," but not considering the Model three has better polish than he initially thought. The visitor has determined that information technology's very profitable for Tesla. It'due south probably the almost profitable electric vehicle on the road right at present.

Munro gives Tesla credit for the style it has integrated the electronics and lowered manufacturing costs as a result. The improved battery technology also impressed the squad. They estimate the xx percentage larger battery cells in the Model 3 offer 50 percent more total ability. Even the picayune things similar electrochromic rearview mirrors are a marvel of cost-efficiency. Munro & Associates estimates Tesla pays $29.50 for each mirror, whereas the BMW i3 is $93 and the Chevy Bolt is $165.

With the full report done, Munro & Associates says Tesla is earning more than 30 percent profit on each Model three sold. That'due south considered a very high profit margin for a conventional gasoline-powered car, but no one else is anywhere close with electric vehicles. And yes, you lot have to cut some corners with the fit and finish to go there. Withal, Munro says his opinion of the Tesla Model iii has inverse. The impressive systems integration makes this a sustainable vehicle for Tesla.

This analysis is based on the upgraded Model three with the long-range battery and enhanced autopilot, which costs around $55,000. Munro is hesitant to speak to the profitability of the $35,000 base model, but it should have virtually of the aforementioned efficient electronics. It might not be 30 percent turn a profit, but Tesla is probably withal making plenty on each unit.