Tesla Shifts Away from One-Piece Gigacasting: Cost-Cutting Measures Amidst Self-Driving Focus

Tesla has decided against pursuing its plan for one-piece gigacasting, choosing instead to maintain its current method of casting vehicle underbodies in three separate parts: the front, rear, and midsection. This decision comes from two sources familiar with the matter, as reported by Reuters.

The shift away from one-piece gigacasting coincides with Tesla’s refocus on developing self-driving vehicles and its decision to step back from introducing a new affordable car, known as the “Model 2.” This model was anticipated to utilize the one-piece gigacasting technology.

By sticking with the three-piece method, previously utilized for models like the Model Y and Cybertruck, Tesla is indicating a strategy geared towards cost-cutting. This decision is driven by factors such as declining sales, reduced margins, and increased competition. Moreover, the company recently laid off over 10% of its global workforce.

Despite this setback, Tesla remains committed to advancing self-driving technology and plans to introduce more affordable models by leveraging its current platforms and production lines. This suggests a continued emphasis on innovation and adaptability within the automotive industry.

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