Tesla has paused its gigacasting ambitions, a process that enables the manufacturing of a vehicle underbody into once single piece, news agencies report.
It comes after it was reported earlier this week that the firm had fired its 500-strong EV supercharging team.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The automaker was seen as a pioneer in the gigacasting process. This latest development, which was first reported by Reuters, is another sign it is trying to reduce its costs in the face of increasing competition and stalled sales this year.
Tesla now wants to stick to casting vehicle underbodies in three pieces, rather than its cutting-edge gigacasting efforts, which involves high-pressure die-casting large sections of a vehicle’s underbody.
A conventional vehicle underbody typically comprises hundreds of individual parts.
The goal of creating a single vehicle underbody was to reduce costs and simplify the process in the long-term. However, the process requires significant upfront investment and takes time to hone.
The Verge reports that when Tesla’s CEO Elon Musk was asked about the firm’s gigacasting innovations during its Q1 2024 results presentation he avoided the question and instead focused on autonomy.
He said: “We should be thought of as an AI robotics company […] If you value Tesla as just like an auto company […] it’s just the wrong framework.”
