Include Gigacasting in the Compilation of Ventures Tesla Has Abandoned

The term “gigacasting” has become synonymous with a type of large-scale, high-pressure casting that has attracted attention even from established car manufacturers. Despite initial casting quality issues at Tesla and concerns about repairability, Toyota stands out as one of the most fervent supporters of this technology. Tesla was expected to push the boundaries of casting innovation by utilizing it to manufacture complete floorpans for electric vehicles, serving as the foundation for their future Robotaxi and entry-level EV. However, this plan seems to have been shelved.

According to information from “two insider sources,” Reuters has reported that Tesla has scrapped its plans to cast entire floorpans for future vehicles. Instead, the company will persist with the approach initially implemented for the Model Y (and continued with the Cybertruck), utilizing cast front and rear subframes linked by a traditional battery enclosure. Supposedly, Tesla opted for this route to mitigate risks associated with the untested production method, which has already resulted in concerning quality issues at a smaller scale in existing models.

Allegedly, the resolution was reached not amid the recent dismantling of Tesla’s charging and product development divisions but in autumn prior to the cancellation of the so-called Model 2. Although CEO Elon Musk denied the termination of this budget-friendly model, asserting it will be constructed utilizing an existing platform and production capacity—aligning with what the sources from Reuters have suggested. However, Musk’s track record, like his assertion of having one million autonomous taxis on the road by 2020, casts doubt on the reliability of his statements nowadays.

The implications of Tesla scaling back its casting ambitions are substantial, as it discards what was viewed as one of the struggling automaker’s competitive advantages. Presently, the company is grappling with an aging lineup with no apparent replacements on the horizon and autonomous driving technologies that lag significantly behind rivals. Consequently, sales are dwindling, resulting in multiple rounds of layoffs this year. Musk is openly concerned about the competition from China, where EVs are offered at a fraction of Tesla’s prices.

Despite receiving poor safety ratings from the IIHS for its autonomy technology, Tesla is currently banking on a self-driving taxi as its primary focus, channeling all efforts into this endeavor. While history has taught us not to prematurely count Tesla out, the current outlook for Tesla’s future appears particularly challenging.

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