1、 are disappointing for a $49k car.How easy are these manufacturing issues to fix?The Model 3 we tore down was from 2017. Tesla has acknowledged quality issues with these early models, but claims quality is now on par with Model S & X. Consequently, we reached out to manufacturing experts, including
2、former Tesla employees, to understand how these issues can be fixed. With Teslas unique OTAs, we are optimistic electronics issues will be addressed. However, experts highlight gaps & noise issues are very difficult & time consuming fixes. Aesthetic fixes can be made to hide gaps （fillers）; however,
3、 truly fixing the gaps requires understanding the whole process, tracing it back, & likely replacing stamping molds. Some experts said the tent assembly was innovative; however, even optimists thought the tent raised quality concerns.What about serviceability?The Model 3 is inherently more difficult
4、 to service simply being an EV & more vertically integrated. However, our teardown team had additional issues which raised servicing concerns. Most notable, the battery pack looks difficult to easily service. The pack is glued & screwed together and then secured to the floor structure with 48 bolts,
5、 some of which can only be accessed from the inside of the car & under trim components.Where did Tesla cut and add content?The EV battery & AutoPilot adds $7,500 in costs; therefore Tesla needed to cut costs elsewhere. We estimate Tesla saved $480 in electronics （cluster, switches, etc.）, and$500-60
6、0 in seating. That said, TSLA added suspension & braking content. If traditional OEMs follow this would be negative for seating （ADNT, LEA, MGA, Faurecia） & cluster （VC, APTV, Conti） suppliers, and positive for braking/suspension suppliers （ Conti, TEN）.Colin Langan, CFAAnalyst colin.langan+1-212-71
7、3 9949Gene Vladimirov, CFAAnalyst gene.vladimirov+1-212-713-1091Patrick Hummel, CFAAnalyst patrick.hummel+41-44-239 79 23David LesneAnalyst david.lesne+44-20-7567 5815Julian Radlinger, CFAAnalyst julian.radlinger+44-20-7568 1171Kohei TakahashiAnalyst kohei.takahashi+81-3-5208 6172Paul GongAnalyst pa
8、ul.gong+852-2971 7868Shingo Hirata, CFAAnalyst shingo.hirata+81-3-5208 6224Steven WinokerAnalyst steven.winoker+1-212-713 2716Damian KarasAnalyst damian.karas+1-212-713 2267Peter Lennox-KingAnalyst peter.lennox-king+1-212-713 3215David Silberman Associate Analyst david.silberman+1-212-713 2228This r
9、eport has been prepared by UBS Securities LLC. ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 37. UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the
10、 objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.ContentsSummary3Surprise #1: Simplistic Design Saves $2,0003Surprise #2: Quality Concerns Have Merit4Are Quality Issues Easy to Fix?5Surprise #3: Serviceability Likely a Ris
11、k7Surprise #4: More Suspension, But Less Interiors9Surprise #5: Vertical integration outside powertrain had limited savings10Surprise #6: Rising aluminum and declining steel content10Q: Who is best/worst positioned?11Sector Summary12Global Auto Suppliers13Tesla Impact14Electrical Equipment and Multi
12、-Industry15Understanding the Quality Issues18#1: Quantifying the Model 3 Quality Issues19#2: Expert Views: Can This Be Fixed?22What feature could others follow?24Let the Race Begin!26 Who Won Lap 3: Finish27The First Turn: Body28Straightaway: Interior33Home Stretch: Safety Systems3522 August 2018AA
13、SummaryTesla is now ramping production of the Model 3, the highest profile car launch in the last decade. To understand how revolutionary this vehicle will be the UBS Evidence Lab tore down the new Tesla Model 3, the 2014 BMW i3, and 2017 Chevy Bolt. The Lap 1 report focused on powertrain, the Lap 2
14、 report focused on electronics, and this report focuses on fit & finish. The UBS teardown experts provided a full breakdown of the major vehicle components including the Powertrain & Battery, the Controlling Electronics, the Body & Chassis, and the Interior & Safety. Each component was removed, stud
15、ied, and scrutinized for a full view of the pros and cons of the design, functionality, the ease of manufacturing, and the cost of production.So who wins Lap 3? The Chevy Bolt wins with the BMW i3 close behind. The Bolt offers good value with a price thats over $10,000 lower than the BMW i3. While t
16、he Tesla Model 3 suffered from significant issues with quality. We intend to name the overall winner of the race in a future research report.Source: UBS Evidence Lab$2,000Our prior estimate for Model 3 Interior and Body costs reflected $2,400 in lower costs vs. the average BMW 3-Series. We were surp
17、risingly close with the estimated savings about $100 more expensive than our initial estimates. Overall, body & interior costs were $460 higher than the BMW i3 excluding body （i3 uses carbon fiber） and only $1,700 higher than the mass market Chevy Bolt.UBS tore down a Tesla Model 3, the 2014 BMW i3,
18、 and the 2017 Chevy Bolt. In the final lap of the race, we look at fit & finish.The body and interior was only$100 more expensive than our original estimate.Figure 1: TSLA Model 3 Previous vs. Teardown EstimatesFigure 2: Tesla Model 3 vs. Chevy Bolt & BMW i3 $8,500 $3,300$3,500 $8,800+$100 higher th
19、anour est.$12,100$300 lower than our est.+$900 higher than our est.$13,600$10,400Body Interior Trim Brakes SuspensionWheels & Tires Hood & Doors SeatsSteering Exterior Lighting Model 3 Previous EstimateModel 3 TeardownEstimateInterior & SafetyBody & ChassisControlling ElectronicsPowertrain & Battery
20、HVACSeatbelt & AirbagsTesla Model 3BMW i3Chevy BoltExterior Trim Other UBSSource: UBSWhile the powertrain and controlling electronics have multiple unique and potentially revolutionary design and engineering aspects to them, the rest of the Model 3 is much more in line with traditional vehicles. The
21、 main exception is the well noted interior cockpit which does not have cluster or switch banks, has one single port for HVAC air evacuation, and eliminates the instrument cluster.Figure 3: Model 3 Cockpit Quality Concerns Have MeritMany reviews of the Model 3 note quality issues, but these are often
22、 not detailed and certainly not quantified. Besides fully dismantling the vehicle, our teardown experts took a variety of measurements for fit, flushness, and noise. Our experts also put it through extensive subjective testing. Specific quality issues identified during our teardown include:（1） Incon
23、sistent gaps and flushness throughout the vehicle.（2） Missing bolts in certain parts of the vehicle （ex. driver side fender）.（3） Usage of zip ties likely as a result of failed manufacturing processes.（4） Usage of multiple different bolts on the same system, driving potential assembly issues.（5） Loos
24、e tolerances on overall assembly （ex. glass rattles when doors are closed）.（6） Excessive force required to close doors/trunks.（7） Body-in-white using different fastening techniques: spot welds, rivets, cold metal transfer, liner laser welds, sinusoidal laser welds which requires both more capital an
25、d testing. The spot welds themselves were unevenly spaced & misaligned, signaling a quality control issue.（8） Lack of manual rear door handle. If there is a 12V power failure, it appears there may be no way to exit the rear of the vehicle without breaking the glass, as the switches are electric.Our
26、teardown experts noted numerous quality issues including gaps, missing bolts, and misaligned welds.Figure 4: Gaps in exterior of vehicle larger than normalFigure 5: Manufacturing defect poorly concealed UBS Evidence LabSource:The quality issues were also apparent in the related testing. The engineer
27、s performed a fit & finish quality audit looking at 1,500-2,000 gap measurements in the vehicle in order to come up with an overall quality score. The Model 3 scored 2,390 which is in the below average range. In addition, the team independently rated the noise within the vehicle, finding the body/wi
28、nd noise as Neither score is impressive for a car that is priced at $49,000.The Model 3 scored in the fit & finish quality audit and the teams rated body/wind noise as borderline acceptable.Model 3ScaleFigure 6: Finish Quality Audit Penalty SummaryFigure 7: Model 3 Cabin Noise Summary Evaluator 1Interior Powe
