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Munro Teardown Shows Model 3 Profitable With 30%+ Margins
- Thread starter Singuy
- Start date
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.
The other thing is how much the extra cost to push production volume up takes out of the bottom line.
Adm
Active Member
In the comments it's said that Munro expects double digit margins for the base model.
ℬête Noire
Active Member
$49K * 0.70 = $34.3K
So you’d expect so given even LR+PUP would have a tiny gross margin at the base price.
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
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
SageBrush
REJECT Fascism
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.
Dr. J
Active Member
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!
JeffK
Well-Known Member
SageBrush
REJECT Fascism
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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SageBrush
REJECT Fascism
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.
mtndrew1
Active Member
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.
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.
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.
