Tesla abandons quest for one-piece ?gigacasting?

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Tesla has backed away from an ambitious plan for innovations in gigacasting, its pioneering manufacturing process, according to two sources familiar with the matter, in another sign that the electric-vehicle maker is retrenching amid falling sales and rising competition.

AUSTIN, Texas —

But 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 aluminum 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 past two new models, the Model Y crossover SUV and the Cybertruck pickup.

Such moves also reflect a fundamental strategy shift, with Tesla now focusing more on developing self-driving vehicles than on pushing for huge growth in EV sales volume, which many investors had been counting on. Instead, Tesla officials said, it would produce affordable models using a current platform and production lines. On an investor call, Chief Executive Elon Musk declined to provide details on the planned new offerings or their target prices.

Big upfront investment Tesla and Musk have said gigacasting helps the automaker reduce costs over the long term. But the process requires large initial investments and is difficult and time-consuming to perfect, automotive manufacturing experts say. “Would they rather have done it all in one big piece? Sure, they would’ve, but at what cost?” Woychowski asked.

 

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