Tesla can break even, or perhaps turn a profit, on its Model 3 sedan, if enough of its customers spend a few extra thousand dollars on options, according to a new report from UBS.

Analysts from UBS's Global Automobiles practice estimate that Tesla will incur an EBIT (earnings before interest and taxation) loss of $2,800 per Model 3 sold at its base price of $35,000 but the company will break even if it can achieve an average sale price of $41,000 — a level UBS thinks will most likely be exceeded.

The UBS analysts developed their estimates after tearing down a new Chevrolet Bolt — a car that they say shares many similarities with Tesla's upcoming Model 3.

Many skeptics have said Tesla may not be able to make money on the Model 3, which is priced steeply lower than the company's high-end cars but still makes use of much of the same technology and materials.