While the impacts of Tesla recent Supercharger team layoffs remain to be seen, reports have surfaced that it’s giving up on another of its innovations. Reuters sources said the automaker has scrapped plans to further develop its gigacasting efforts, which drastically reduces the complexities involved with manufacturing unibody vehicles.
Tesla had pushed toward developing a new platform for smaller, more affordable vehicles and initially thought it would cast the body in one piece. Those plans have been scrapped in favor of casting in three pieces, similar to the way it makes components for some existing models. While not the cutting-edge innovation Tesla wanted, it’s still worth noting that a three-piece casting process is still significantly less complex than more traditional manufacturing methods, which can involve hundreds of components.
This is yet another sign that Tesla is facing increasingly fierce competition from Chinese companies and other automakers. It could also point to tightening profit margins and softening demand for EVs, especially in the United States. The automaker is constantly adjusting its pricing, recently slashing the cost of Full Self-Driving tech and bumping the price of the brand-new Model 3 Performance by $1,000.
Many have speculated that Tesla may be shifting its strategy to focus on robotaxis and autonomous technologies over vehicle sales numbers, though CEO Elon Musk recently said the company had developed a streamlined production process to help it build more affordable vehicles. Earlier Reuters reports noted that Tesla had scrapped plans for the cheaper models altogether, but Musk’s latest announcements point to the automaker using its existing platforms and production facilities to build the new vehicle.
[Image: Gofra via Shutterstock]
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