Teardown of Tesla Model 3 points to total potential cost of $28,000

Teardown of Tesla Model 3 points to total potential cost of $28,000

German magazine WirtschaftsWoche has revealed in a recent report that an automaker engineering firm in the country has completed a teardown of US electric vehicle maker Tesla Motors Model 3 electric car.

The report highlights the apparent interest of yet another automaker engineering firm to get some insights into the Tesla Model 3 technology. Already, some earlier reports have revealed that several Tesla rivals have purchased Model 3 vehicles to try as well as to learn about the underlying technology.

According to the WirtschaftsWoche report, the German engineering firm which has completed the Tesla Model 3 teardown had purchased Model 3 vehicles on the used market to benchmark and rip apart, in order to know the potential cost of the vehicle to the manufacturer.

Going by the cost analysis reportedly carried out by the German engineering firm, the total potential cost of Tesla Model 3 is only $28,000; with the cost of materials and logistics being $18,000 and the labor costs being $10,000.

On the basis of the cost analysis of the Model 3, a test engineer for the German engineering firm said that as per his opinion, the vehicle could turn out to be fairly profitable for Tesla Motors. The test engineer further added that if Tesla manages to achieve the Model 3 production target rate of ‘10,000 units per week’, the vehicle will make a notable positive contribution to the company’s earnings.