Tesla has reportedly retreated from its ambitious plan for innovations in gigacasting its developing manufacturing process.
It was another signal that the Texas-based electric vehicle (EV) maker was holding its previously reported plans as it was challenged to keep up with declining sales and profits.
Meanwhile, Tesla has been leading in gigacasting, which uses vast presses to die-cast huge sections and swiftly produces the entire underbody in a single piece. The company’s goal was to streamline the process while reducing manufacturing costs.
However, the EV giant is reportedly maintaining its production process for its Model Y crossover and Cybertruck vehicles.
Meanwhile, Tesla CEO Elon Musk has cautioned that sluggish sales caused the company’s latest decline due to heightened rivalry in the US and China markets.
Since the beginning of the year, the firm has laid off about 10.00% of its global staff, an exodus of various top executives, and reported earnings that came up short amid analysts’ unfavorable forecasts.
Meanwhile, Tesla remains optimistic about its upcoming cheaper Model 2 electric car with a $25,000 price. However, reports show that Musk has halted the plan, choosing to set the firm’s assets into an utterly autonomous robotaxi.
Musk Reveals Gigacasting Aids Tesla in Cutting Costs
Tesla CEO Musk noted that gigacasting could help the EV giant reduce prices over the long term.
However, analysts said the process demands vast initial investments and is difficult and time-consuming to polish.
Meanwhile, vehicle production enthusiasts noted that Tesla’s more traditional gigacasting method reflects the suffering it has experienced in launching complex and innovative cars on time.
Moreover, the company’s ambitious Cybertruck arrived last year at a higher cost than expected following delays in settling manufacturing problems.
An analyst said Tesla’s gigacasting withdrawal mirrors the firm’s struggle last year to release Model 2 in time to keep up with Chinese rivals already dominating the cheap EV segment.
