Is Tesla Scrapping Its Next Generation Gigacasting Manufacturing Process Plan?

In the last few years, the Electric Vehicles (EV) market has grown tremendously, with new players that aren’t related to the industry entering the arena, while established ones look for ways to expand their capabilities.

At the start of the year, we reported on autonomous vehicle leader Tesla losing top spot to BYD as the Chinese automaker surpasses Tesla for worldwide sales in fully electric vehicles.

In Q4 2023, BYD sold more EVs than Tesla, reaching a record of 526,409 EVs as compared to Tesla’s 484,507.

Soon after, we reported that Tesla was devising plans to start production of its next-generation EVs aimed at a larger market and is being described as a compact crossover.

Of course, Tesla saw this coming long before, which is why it had set plans to enhance its manufacturing process by bringing in innovation into “gigacasting”, a cutting-edge process that involves using huge presses with 6,000 to 9,000 tons of clamping pressure to die-cast large sections of a car’s underbody.

In contrast, typical vehicles can consist of hundreds of individual parts, whereas Tesla was moving towards the goal of eventually producing entire underbodies in a single piece.

The move would see the company simplify manufacturing processes and cut costs.

However, as per reports, the plans to innovate the process may be facing issues now that could spell more problems for Tesla.

So, what was reported about Tesla’s gigacasting plans? Let’s explore!
 

What’s Happening With Tesla’s Gigacasting Plans?

 

• A few months ago, we reported that Tesla was considering further innovations on its pioneering manufacturing process, gigacasting, a move that would see the company design its small vehicles using an underbody designed in a single piece.

• By using clamping pressure of thousands of tons, Tesla planned to dramatically cut production costs and enhance manufacturing processes while leaving competitors scrambling to catch up.

• Now, reports find that Tesla is backing away from those plans, according to two sources familiar with the matter.

• This move comes as the company is facing tough competition from rivals with smaller and cheaper vehicles, decreasing sales figures, falling profit margins and an overall slowing down of demand for EVs.

• In the last month, Tesla even laid off over 10% of its global workforce, while top executives have also left the company.

• Instead, Tesla will retain its usual method of casting vehicles underbodies in three sections; a front, a rear and a midsection made from aluminum, with steel frames to store its batteries.

• As per the reports, the move to step back on the process came last autumn, coming before Tesla decided to hold off on plans to develop an all-new affordable car, which was slated to be the first model to be manufactured using the new process.

• This too was followed by the company saying it had a simpler, faster plan for producing more affordable vehicles using a current platform and production lines.

• Recently, Tesla also revealed plans to develop self-driving robotaxis using the same platform.

• Tesla did not respond to provide a comment on the matter. 

 

What Did Experts Say About The Move?

 

• As per the report, Terry Woychowski, President of US engineering company Caresoft Global, said, “Holding off on one-piece gigacasting will save the company from making massive short-term capital investments in manufacturing and design.”

• Furthermore, Woychowski asked, “Would they rather have done it all in one big piece? Sure, they would’ve, but at what cost?”

• According to James Womack, a vehicle manufacturing expert and former research director at the Massachusetts Institute of Technology, “Tesla’s gigacasting pullback reflects the company’s scramble last year to launch an all-new $25,000 car to catch up with Chinese EV makers who are already dominating the low-cost EV segment.”

• [Contd.] “But pushing forward with an innovative production technique would do little to help sell a Tesla car to consumers.”

• [Contd.] “It’s not very exciting from the standpoint of the public and buyer ... and you don’t know whether this is really a big cost-saver or not.”

Do you think Tesla will be able to retain its position as a leading EV seller as its rivals introduce more options of cheaper EVs. Do you think Tesla needs to consider other methods to slash costs?

Let us know in the comments below!