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Tesla Abandons Ambitious Gigacasting Plan as Sales Decline and Competition Rises

Tesla has decided to step back from its ambitious plan for one-piece gigacasting, a manufacturing process that simplifies production and reduces costs. Instead, the company will continue using its proven method of casting vehicle underbodies in three pieces. This decision is seen as a result of falling sales, rising competition, and a shift in focus towards developing self-driving vehicles.

Gigacasting is a groundbreaking technique that uses massive presses with clamping pressure to die-cast large sections of a car’s underbody. Tesla had aimed to produce the underbody in a single piece, but has since opted for the more traditional three-piece approach. This change indicates a strategy shift for Tesla, as it prioritizes self-driving technology over increasing electric vehicle (EV) sales volume.

The decision to forego one-piece gigacasting was made before the cancellation of Tesla’s Model 2, an affordable car slated for release in 2025. Instead of pursuing this model, Tesla plans to produce affordable vehicles using existing platforms and production lines, although specific details have yet to be revealed.

While Tesla has halted its work on one-piece gigacasting, it has not abandoned the small-vehicle platform entirely. The company will proceed with developing a self-driving robotaxi based on the same platform. Suppliers involved in Tesla’s gigacasting operations are adapting the three-piece process for the next-generation vehicle.

Experts in vehicle manufacturing understand Tesla’s conservative approach towards gigacasting. Launching complex and innovative vehicles on time has historically presented challenges for the company. The Cybertruck, for example, arrived with delays and higher prices than anticipated due to manufacturing issues. Holding off on one-piece gigacasting allows Tesla to avoid significant capital investments in manufacturing and design.

Terry Woychowski, president of engineering company Caresoft Global, explains that while Tesla would have preferred a one-piece casting process, the costs associated with it were not justified. James Womack, a vehicle manufacturing expert, believes Tesla’s decision reflects the company’s rush to catch up with Chinese EV makers in the low-cost segment. He also suggests that an innovative production technique like gigacasting may not have a significant impact on consumer interest or cost savings.

In summary, Tesla’s move away from one-piece gigacasting demonstrates its adaptability and strategic decision-making amid changing market dynamics. While the focus shifts towards self-driving vehicles and affordable models, ensuring timely production and cost-effectiveness remains crucial.