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Munro Teardown Shows Model 3 Profitable With 30%+ Margins

Discussion in 'Model 3' started by Singuy, Jul 16, 2018.

  1. Singuy

    Singuy Member

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    • Informative x 4
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  2. SageBrush

    SageBrush 2018: Drain the Sewer

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    Interesting, although I'd like to know where the errors happened and why.
     
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  3. adaptabl

    adaptabl Member

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    It will be interesting to see what the cost is of the SR base model3 and if it can be profitable. The model tested was a LR with the interior option package.

    The other thing is how much the extra cost to push production volume up takes out of the bottom line.
     
    • Disagree x 2
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  4. Adm

    Adm Active Member

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    In the comments it's said that Munro expects double digit margins for the base model.
     
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  5. ℬête Noire

    ℬête Noire Active Member

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    $49K * 0.70 = $34.3K

    So you’d expect so given even LR+PUP would have a tiny gross margin at the base price.
     
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  6. Pollux

    Pollux Active Member

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    I'd never seen Munro before although I'd heard of the company and the individual. I thought the video was remarkably factual (or at least, presenting what Munro regarded as fact, maybe more knowledgeable people would disagree). I was fascinated by his facts and opinions concerning first the body (which he thought had lots of fit and finish problems), then the drive (which he really liked), and finally the parts teardown (where he was quite impressed).

    My absolute favorite was his line at the very end of the video, almost lost in the concluding music and graphics: "Like I say, a lot of crow being eaten around here."

    I wound up thinking that Munro seems like a pretty professional, honest guy where you might disagree with his observations or conclusions but not because he set out to deliberately pump up or disparage the car he was analyzing.

    Thanks for posting this video.

    Alan
     
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  7. SageBrush

    SageBrush 2018: Drain the Sewer

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    I suggest taking the Munro figures with a pinch of salt, but just for giggles:

    If the LR + PUP has a 30% profit margin then cost to build is ~ 35k
    That implies that a base, $35k car has profit equal to manufacturer cost of the larger battery and the PUP.
     
  8. Dr. J

    Dr. J Member

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    The first video turned me off--pointing out kind of stupid stuff (first responder loop difficulty, e.g.) along with valid criticisms. So I skipped #2, but this one is interesting. Keep in mind, their goal is to sell reports, so I think their attitude throughout was consistent with that aim: Hey, these guys need to hire us to show them how to make cars! Hey, the competitors to these guys need to hire us to show them how Tesla does it!
     
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  9. JeffK

    JeffK Well-Known Member

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    I'd love to get a copy of that report but I bet he's charging an arm and a leg.
     
  10. SageBrush

    SageBrush 2018: Drain the Sewer

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    V.1 is being discounted. ;-)
     
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  11. sooner

    sooner Member

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    Once again, the AutoLine guy is the one who is super negative. Sandy is impressed, and overwhelms the other gentleman's preconceived notions, with positive stuff.
     
    • Disagree x 1
  12. Singuy

    Singuy Member

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    #12 Singuy, Jul 16, 2018
    Last edited: Jul 16, 2018
    They should, did you the see the amount of work put into the tear down and analysis? Pretty sure some analyst will get a copy and then make their money back using a paywall.
     
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  13. SageBrush

    SageBrush 2018: Drain the Sewer

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    Tesla is known to produce in-house a large fraction of the car that most manufacturers buy from 3rd party vendors. I cannot begin to imagine how Munro estimates those Tesla costs.
     
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  14. brianman

    brianman Burrito Founder

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    Has anybody found a link to the comparison report? I'm curious about the pricing.
     
  15. SageBrush

    SageBrush 2018: Drain the Sewer

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    It would be funny irony if Tesla was a Munro customer, hoping to identify 3rd party suppliers who are over-charging.
     
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  16. mtndrew1

    mtndrew1 Member

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    I’m under the impression Munro charges in the tens of thousands of dollars per segment of the report so I presume they guard it very carefully and it’s unlikely that one could find it floating around the Internet.
     
    • Like x 1
  17. adaptabl

    adaptabl Member

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    More than that. The cost to do a teardown is very expensive. He may just be trying to hype it up and sell more copies of the report.
     
    • Disagree x 2
  18. Mobius484

    Mobius484 Member

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    Watched both in entirety and though very interesting. Yes the auto guy and his buddies have some problems comprehending things.... they really liked the conclusions from the first interview. Do they reveal their sponsors? Do they make any disclaimers as to financial ties like I do as a physician whenever I I’ve a talk? I like the munro guy, he seems more rational.
     
  19. mtndrew1

    mtndrew1 Member

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    Both? Is there a more comprehensive video than the 5:31 version linked above?
     
  20. SD_Engnr

    SD_Engnr Member

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    I read somewhere that it could cost up to $150k for one of these reports.
     

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