TECH - Giga Pause: Elon Musk's Tesla Reportedly Backs Down On Ambitious EV Manufacturing Technique Amid Hardcore Cost-Cutting Drive | Benzinga
Tesla Inc. (NASDAQ:TSLA) has reportedly abandoned its pioneering manufacturing process, indicating a shift in strategy for the EV behemoth as it grapples with falling sales and mounting competition.
What Happened: Tesla has stepped back from its ambitious gigacasting plan, Reuters reported, citing two sources familiar with the matter.
The company’s objective was to streamline manufacturing and cut costs by casting large sections of the car's underbody in one piece.
However, Tesla has now reportedly paused this initiative, choosing to continue with its established method of casting vehicle underbodies in three sections.
This move to delay the potential manufacturing breakthrough is another instance of Tesla cutting short-term expenditure as it adapts to declining sales, shrinking profit margins, and escalating competition from rival EV manufacturers such as China's BYD Co. (OTC:BYDDY) (OTC:BYDDF).
Not A Recent Plan? The gigacasting reversal reportedly took place last fall, before Tesla’s decision in late ...