Tesla Model 3 Teardown Expert Munro Divulges New Profit Details

FEB 28 2019 BY STEVEN LOVEDAY 52

What new goodies could Sandy Munro possibly offer about the Tesla Model 3?

Automotive industry sought-after teardown expert Sandy Munro has made a lot of waves when it comes to the Tesla Model 3. Early on, he equated it to an early Kia. That is, in terms of it’s fit and finish. Since then, Munro has changed his tune on repeated occasions. Now, he seems to wonder if any comparable car can attempt to top the magic found in the Model 3.

Automakers pay people like Munro to handle such teardowns and provide sought-after insight. More specifically, that is OEMs that are working to compete with a particular company or model: i.e (Tesla) and (Tesla Model 3). We can all but guarantee that Tesla has not reached out to and/or paid for any analysis from Munro and Associates. Yet still, Munro continues to assert that he’s enamored with the Tesla Model 3.

Check out this recent interview for more information and some never-before-revealed analysis.

Video Description via E for Electric on YouTube:

 New Tesla Model 3 Insight Revealed by Teardown Guru Sandy Munro

Auto manufacturing expert Sandy Munro, the man behind the Tesla Model 3 teardown, had revealed a new shocking revelation about the profit margins for Tesla Model 3 made in China. Let’s talk about it as I take your questions and comments during the LIVE stream!

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52 Comments on "Tesla Model 3 Teardown Expert Munro Divulges New Profit Details"

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Well Sandy had his Come to Tesla moment, and saw the light.
New converts are often the most zealous.

He never said anything bad about Tesla

He has always been impressed with the technical / drivetrain design aspects of the Model 3. Production build quality is what he has repeatedly complained about.

Only with the body’s manufacturability and panel fit. Panel fit has been greatly improved. I expect to see major changes in the Model Y.

Your memory is quite short. The first Model 3 teardown video that Sandy Munro released was almost entirely negative about the Model 3, and showed a pronounced anti-Tesla bias.

https://insideevs.com/tesla-model-3-teardown-reveals-issues-video/

Fortunately, Sandy is honest enough to admit he was fundamentally wrong about the Model 3. He has had a real “road to Damascus” conversion experience, and now describes himself as a Tesla fanboy!

But even now, Sandy says only negative things about the build quality of the Model 3 car body. It’s everything else in and on the car that has Sandy singing praises of Tesla!

https://insideevs.com/munro-tesla-model-3-profitable/

Agree, Sandy is one of the good guys and he is honest in what he says be good or bad about the product that he is testing or tearing down.

His comments have been very constructive because he’s agnostic about platforms and manufacturers. He makes his bones on objectivity. It was constructive when he was negative and it’s constructive now that he has more positive things to say.

Agree Michael

You have some good points, but you’ve overstated the case.

Many of Sandy’s remarks in his first Model 3 teardown video were far from constructive. Many showed a distinct anti-Tesla bias, especially all that time he wasted on his completely off-base remarks about the dangers to emergency responders cutting into the car.

Those remarks were flat wrong. Emergency responders are provided with detailed instructions for all car models on how to deal with emergencies, and they do follow those instructions. No emergency responder has been injured or killed while cutting into any Tesla car.

I would add it made little sense to complain so much about “body on white” weight, and say nothing of the reality the Model 3 weighs ~3600lbs (SR) with about the same range as the 5,500lb eTron.

I loved Sandy’s demeanor toward David Welch (Bloomberg), though. That was a good AutoLine episode, Tesla fan or not.

Would anyone be willing to summarize the salient points in this video? Not everyone has 40 mins to spend watching.

Thanks in advance.

Rasmus Birkegaard Christensen

It’s worth watching though. He is actually very entertaining, he really knows his stuff. 👍🏼

Watch it when you get home. Ahhh

1) He thinks margins for the high spec Model 3 could be as high as 40% once they’re really settled in their production. 2) He thinks the low spec Model 3 should be made in China. That it could have a 25% gross margin there. 3) Legacy makers suffer from car/career problem that prevents people from taking certain good risks. Tesla doesn’t have that problem. 4) Legacies have little impact to make a great compelling and profitable EV any time soon. 5) Guys who tore down the Model 3 ended up buying them for their own use. 6) He loves the thrill of driving Tesla cars.

I don’t agree with car/career problem comment. I think the more likely reason is if it’s not broke don’t fix it. A company like GM is making record profits right now. Would you like to be the person in the room to say we should drop everything and focus on EVs? As much as people give credit to Tesla you have to realize they had no other choice. They didn’t have anything else to lean on or make a profit from. If you only do one thing you better be successful at it or you’ll be out of business. So for that, I give Elon a lot of credit for keeping his eyes downfield and not worry as much about the noise.

So you do agree with the car/career problem. Because you just described it.

That is what you said just said, the car/career problem in old car companies. A person’s career following the old model is doing good, thus they avoid the risk of changing things and stick to what they already know.

I wonder if good old Sandy have ever thougt of the possibility that a high and rising number of people actually WANT an electric car over the ICE.. But they cant afford it..
So far Tesla is the only company making apeling BEVs and use economy of scale to drive down the unit cost
Thanks Elon- love your cars

Steve Jobs mantra

Steve wasn’t big on driving the price down. Maybe the price Apple paid their suppliers, but Apple has never been interested in competing in the lower half of the market.

Now the interesting thing will be if there comes a time when the price difference is so great that people start to abandon the iPhone. There are a couple of 60$ Android phones that are very capable. Kinda hard to sell a similar Apple phone for 1000$.

Please watch the video. It was a great discussion

Want an affordable EV: used market. I keep saying it.

Watching it right now.

He’s saying exactly what I’ve been telling people every time they bring out the line about the legacy automakers eating Tesla’s lunch once the decide to build EVs. They have no incentive to do that right now or in the foreseeable future. And until they do, Tesla owns the space (EVs). The problem for the legacies, “the space” is going to BE the car market sooner than they realize.

I’m not worried about the punch in the face Tesla just gave legacy makers. They can’t match it.

Question is, can Tesla get the volume boost that recovers the profitability they just lost, in margins?

In his very first Model 3 video, Sandy came across as a jerk (“You can see the panel gaps from Mars”).

In each subsequent video he’s warmed up to Tesla more and more. I actually enjoyed watching this latest video. He seems to have acquired a lot of information since that first video and can now confidently talk about Tesla’s strengths and weaknesses without the hyperbole.

Here he reveals that some of the guys who participated in the Model 3 teardown ended up buying the car for their own use and love it. He can’t say enough good things about it. Great listen.

It’s amazing just how far Sandy Munro has come in his attitude toward Tesla! It has been a truly amazing conversion experience, and he now describes himself as a Tesla fanboy. There is a night-and-day difference between the attitude he showed in his first Model 3 teardown video, full of sarcastic remarks and many negative remarks which were both highly misleading and factually wrong… versus his more recent extended remarks about the Model 3, in which he’s bubbling over with praise for Tesla’s innovations and cost savings.

So when they say “You can’t teach an old dog new tricks”… that doesn’t apply to Sandy! 🙂

Sandy runs a business. His business is to sell his reports. Every time he appears in public it is to promote his business. This is a sales pitch. His latest sales pitch is clearly aimed at ICE car companies who want to know why their EV’s are not as good as a Tesla, thus the very positive sales pitch. When he was being a jerk, that was a different sales pitch with a different target audience.

His sales pitches for his products is based around the illusion that somehow he knows better than car companies, and each time he makes a pitch, his goal is to foster that illusion. Then he hopes some middle-management cog will expense his reports for hundreds of thousands each year under the title of “due-diligence”.

All of this has nothing to do with whether he is right or wrong about anything he says about Tesla. That is outside my point. I’m not saying he is right or wrong about anything. I’m just stating the facts about the business he runs, and how he advertises his product.

I found the most interesting part about the auto manufactures in China being obsessed with quality and growing their business. We in N.A. already buy almost everything Chinese, my laptop computer was made there. First we will see imported Chinese cars and they will be much better than most people expect, and eventually they will set up factories here just like Japanese auto companies to get better break on taxes. I don’t see much hope for GM, FCA, and Ford.

GM already imports cars from China to the US.

GM imports cars made by GM from China to the U.S.

No Chinese auto maker has yet demonstrated the ability to penetrate the U.S. market. If Chinese auto makers are “obsessed with quality”… well, I suppose that’s because when you’re at the bottom of a hole, climbing out is your first priority!

A few years back, I read a review of a BYD e6, which BYD unsuccessfully tried to test market in the U.S. The build quality described in the review was shockingly bad.

If Chinese auto makers are “obsessed” with quality… well, they had a very long way to go to get to where they could successfully compete in the highly competitive new car market in first-world countries. Not just in the USA, but in Western/Central Europe and British Commonwealth countries. Maybe they’re getting close now; I dunno.

Well Andrew Wheeler was just confirmed by the Senate to be the Director of the EPA. A former coal lobbyist and all the GOP except Susan Collins voted for him.
I don’t know what the GOP has against the environment.

> I don’t know what the GOP has against the environment.

1) they don’t give a crap about the environment.
2) They only give a crap about rich people

Environmental considerations hurt profits of wealthy corporations that make their rich people richer. Pollution hits poor people—wealthy people have money to live in the nice areas. Maybe even in another country.

I.e. “if you don’t like pollution make more money then move somewhere else.”

Are you trying to be sarcastic or do you agree with what the GOP is doing.

Sounded spot on. What was sarcastic?

Republicans are Socialists: If it isn’t destruction of markets for private oligopoly/monopoly, its having no answers for the environment as they dig sh!t up and burn it.

Republicans used to be competitive capitalists, who knew what “going to far” meant. Now, it’s the “me first”, “the h3ll with you and the future” clan.

Seriously, if they can dish out crap for #GND, they should weather the same tone at themselves.

“I don’t know what the GOP has against the environment.”

Unfortunately, bribery lobbying of Congress and other parts of the U.S. Federal government by Big Oil and other powerful industrial polluters has been very, very successful over the past three decades or more.

The level of corruption in Washington, and in State governments, has reached an astounding level. That has risen right along with the increasing disparity in wealth between rich and poor.

Time for a new generation of muckrakers and “sunshine” laws!

These last two years are off the charts as far as corruption. It’s astonishing the amount of money Trump advisors that have been convicted already have cheated on there taxes.
They don’t play it’s hundreds of thousands and millions.
Trump has to be the biggest cheat but everyone in Congress needs to be audited and some officials at the IRS need to be audited and given lie detectors tests. How can so many rich people cheat on taxes and not get caught.

china has billions of people? lol.

The current population of China is about 1.4 billion people, so the “joke” is on you!

I was thinking the same thing, but I just thought oh well he’s a tur

Yet Bob Lazar was easily dismissed? He was an ‘industry expert’ as well.

This interview was like watching Gomer Pyle USMC interviewing General Patton.

As are all E-lectric posts. Which is why I de-subscribed his channel.

one of my biggest fears for Tesla long term success was that “big auto” would step up, sell at a loss initially to force the little guy Tesla out and re-establish the status quo. Happy to be as wrong as Sandy Munro’s initial comments on the Model3. It looks like Tesla have the ball and the rest are scrambling to get anywhere near. There’s trouble coming in the industry and it increasingly doesn’t look like it will be for Tesla.

Look at what they have to sell right no, they would have to sell at a BIG loss to kill Tesla sales. And the few models that do look good against Tesla are production limited.

Tesla looks safe for at-least the next two years and probably longer.

Can’t agree with Munro’s comment on the BMWi3 range extender, mine is barely audible. Maybe his test drive was after his technicians had removed the Rex access panel!

Feb 28 Today ,Tesla stopped orders for mod3 briefly, and announced the Base Mod3 for $35,000 can be ordered now and deliveries starting in 4 weeks.Go Tesla! Read about it in Electrek.

I hope some influencers at the legacy US auto manufacturers will listen to Sandy Munro.

The Chinese sure seem to be.

I always admire anyone who admits to their mistakes ., That is a sign of an honest and decent human being .

Don’t know about honesty or decency but it’s definitely a sign of someone with a higher intelligence than ego.

Why was this written?