The relentless attacks on Tesla continued this morning with a report from the Swiss investment banking firm UBS claiming that the base model of the Model 3 will not be profitable. Over a year ago, UBS did a tear down of a Chevrolet Bolt EV and, using that examination, determined before the Model 3 was even in production that the Model 3 would not be profitable. UBS said they recently did a tear down of the Model 3 long range battery pack and they have concluded that, at best, the Model 3 will be a break-even product.
It’s interesting that 2 other research firms have dissected the Model 3 and concluded that the Model 3 would be very profitable to produce. What is also interesting is that I don’t remember seeing any mainstream media coverage of the positive reports about expected Model 3 production costs.
The problem for the big oil interests is that the Tesla Model 3 is a game-changer. I own a Model 3. Long before I bought my Model 3, I’ve wanted to drive a car that does not use gasoline. After driving the Model 3, it is beyond me why anyone would want to continue to drive an automobile that is not an electric vehicle.
The cost for electricity for the Model 3 is less than half what I was paying for gasoline for my Toyota Prius. I have a charging station in my garage, so my car is charged mostly at home. When I take long-distance trips, I use the Tesla Supercharger network, which is also less than half the cost of gasoline. The Model 3 does not pollute the air, it is always powered by the Sun when I charge at home, and the car’s performance is well beyond anything I have ever driven.
After the UBS report, Telsa stock plunged by nearly 10%. It apparently doesn’t matter that Tesla is selling thousands of Model 3’s a week. The negative press aimed at Tesla is not surprising. Tesla is threatening the century-old cash cow that is big oil.
This past week on Epic Homes, a TV show on the Discovery Channel, a $43.5 million home was showcased. The owner was an oil trader. Need I say more. The oil interests will not go quietly.