Tesla Model 3 is most profitable electric car - consultant

FILE PHOTO: A row of new Tesla Model 3 electric vehicles is seen at a parking lot in Richmond, California, U.S. June 22, 2018. REUTERS/Stephen Lam/File Photo

DETROIT (Reuters) - The Tesla Inc TSLA.O Model 3 sedan is the most profitable electric car in the automotive industry, according to the head of a top automotive consultant.

Sandy Munro, president of Michigan-based Munro & Associates, said the car generates net profit margins in excess of 30 percent. Munro, whose firm tore down the Model 3 to better understand it, made his comments on an appearance on Monday on Autoline, an automotive-focused television show.

In previous episodes discussing the Model 3, Munro had been critical of the car’s fit and finish but praised its handling on the road.

“The Model 3 is profitable, so I have to eat crow. I didn’t think it would happen this way,” he said on Monday. “No electric car is getting 30 percent net, nobody.”

Munro could not be reached by Reuters for comment on Tuesday.

Tesla, whose shares were up 1.7 percent at $315.42 in Tuesday morning trading on the Nasdaq, is pushing to increase production of the Model 3, which starts at $35,000 and is key to the electric carmaker’s profitability. The company has been burning through cash to produce the Model 3.

Munro’s firm has done work for several automakers and also is followed closely in the analyst community.

Reporting by Ben Klayman in Detroit