Tesla can breakeven on $41,000 Model 3s now but targeting profitable $35,000 Model 3s by the end of 2018

Elon Musk believes it could be possible to scale production at Tesla and lower their design and technology costs enough to be able to offer a truly mass-market electric vehicle priced as low as $25,000 within three years.

Recently analysts at UBS pulled apart three different electric cars to compare their technology and production costs: a new Tesla Model 3, a 2014 BMW i3 and a 2017 Chevy Bolt.

The engineers hired by UBS to examine a $49,000 2018 Model 3 were crazy about the powertrain. UBS analyst Colin Langan said engineers found Tesla Model 3’s have next generation, military-grade technology that is years ahead of competitors. The costs were higher than expected, and the cars would lose about $5,900 each at Tesla’s original plan to sell an entry model at $35,000. So currently Tesla can breakeven at $41,000.

Elon also wants to improve Tesla production to make two cars or more at once. This would allow production of the crossover Model Y, a Tesla pickup truck, the Semi tractor trailer, and the next generation of the Roadster.

The profit margin on more expensive Model 3 is estimated to be about 18%.

Elon Musk and Tesla are trying to make $35,000 Model 3’s profitable by the end of 2018.

A new Roadster will have almost double the batteries and go zero to 60 in 1.9 seconds

A new Roadster would have a 200 kilowatt-hours packs.