A new technique from Tesla designed to drastically cut vehicle manufacturing time and cost is said to have been scrapped, adding to the latest drama from the electric-car company.
Tesla has reportedly taken a step back from a new manufacturing technique which has been widely touted as being revolutionary for the automotive industry.
News outlet Reuters claims Tesla has abandoned its expanded plans for single-piece gigacasting – a process which stamps out large pieces of metal used for the floors and side panels in vehicles, which would have saved considerable time and money during manufacturing.
Currently, most car makers cast multiple pieces before welding or bonding them together to make a large section.
Tesla already uses gigacasting in Texas-built Model Ys to stamp the front and rear structures of the car in single pieces, but does not use it on the underbody – and the technique is not used at all on most of its models.
According to the latest report, Tesla has since halted the effort, opting to stick with its more proven method of casting vehicle underbodies in three pieces: two gigacasted front and rear sections and a midsection made of aluminium and steel frames to store batteries, according to the two sources familiar with the matter. That is largely the same three-piece method the company has used for its last two new models, the Model Y crossover SUV and the Cybertruck pickup.
However, Reuters claims the decision was made in the third quarter of 2023, prior to reporting the US electric car maker had axed its affordable small car project – which prompted CEO Elon Musk to accuse the news outlet of lying.
If the timeline is accurate, the decision would have come just prior to Lexus unveiling the world’s first concepts with underbodies created using gigacasting techniques.
While Tesla has not yet confirmed any changes to its pursuit of single-piece underbody gigacasting, the news comes just days after the company laid off two teams – one responsible for its Supercharger network, and the other for developing new models.
The decision to hold off on the potential manufacturing breakthrough marks another example of Tesla slashing short-term spending as it adjusts to falling sales and profit margins, softening EV demand globally, and intensifying competition from rival EV makers such as China’s BYD (002594.SZ). Tesla last month laid off more than 10% of its global workforce. A handful of senior executives have also resigned or been pushed out.