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Tesla’s Model 3 margins could be dented by costly powertrain: UBS

(Reuters) – Electric carmaker Tesla Inc’s (TSLA.O) premium Model 3 sedan will not produce better profit margins than a conventional BMW (BMWG.DE) and the company could actually lose $6,000 on every base model due to higher costs for the powertrain, according to an analyst at UBS.

Tesla’s shares were down about 3 percent at $325 in premarket trade on Friday.

The company is banking on its Model 3 to ensure future profitability. The base model is $35,000, but car buyers can upgrade to a $49,000 version, which has a longer range battery and high end trim.

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