Electric vehicle giant Tesla abandoned its plans to employ a next-gen gigacasting process in producing its future products, Reuters reports, citing two sources familiar with the matter.
The decision seems part of the company’s plans to cut costs amid waning sales and intensifying competition.
Plan changes
Tesla has pioneered gigacasting to accelerate electric vehicle production. It features giant presses with thousands of tons of clamping pressure to die-cast huge parts of the vehicle’s underbody. For reference, a typical vehicle’s underbody has hundreds of individual parts.
Tesla was reportedly exploring the potential to cast the whole underbody of its future products out of a single piece in 2023. The company’s long-term goal is to radically simplify and accelerate electric vehicle production while reducing costs.
However, the Musk-led company abandoned this endeavor. It reportedly decided to maintain its already proven gigacasting approach: casting the underbody in three pieces. As outlined by the unnamed sources, the pieces include the front and rear sections and a midsection to house the battery pack.
Tesla already utilizes this approach in two of its popular offerings, the Model Y electric crossover, and the Cybertruck electric pickup.
Cost cutting efforts
Tesla’s alleged decision to cancel the next-gen gigacasting plans demonstrates its focus on cutting short-term expenditures while the market cools.
Tesla has been hit with declining EV sales and profit margins due to the waning demand on a global scale. The intensifying competition brought on by Chinese players’ low-price offerings also puts heavy pressure on Tesla.
Tesla’s major pivot
Last month, Tesla dismissed over 10% of its global workforce, including several senior executives. The move seemed to prompt other senior executives to resign from their jobs at Tesla.
Tesla also fired its entire Supercharging team on Tuesday, including Senior Director Rebecca Tinucci.
The Musk-led company has also expressed increased focus on Artificial Intelligence and robotics over next-gen electric cars. Chief Elon Musk seems to be pushing the company to scale back work on core products.
The move can substantially discourage investors, as they see next-gen products as growth drivers for the brand’s sales volume.
