Employees at Tesla’s Berlin-Brandenburg Gigafactory work on the production line of the Model Y electric vehicle. The Tesla factory was completed and put into production on March 22, 2022.
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Tesla The company has abandoned an ambitious plan to innovate Gigabit Broadcast, its pioneering manufacturing process, according to two people familiar with the matter, as the electric car maker retrenches amid falling sales and rising competition. Another sign of spending.
Tesla has been a leader in gigacasting, a cutting-edge technology that uses massive presses with thousands of tons of clamping pressure to die-cast large portions of a car’s underbody. On a typical vehicle, the underbody may be made up of hundreds of individual parts.
Last year, Tesla developed a new small vehicle platform designed to integrate the underbody, Reuters Only reported last September, citing five sources familiar with the automaker’s gigabit broadcast business. The long-term goal is to radically simplify manufacturing and cut costs.
But Tesla has since halted that effort, choosing to stick with its more proven approach of casting the vehicle’s underbody in three parts: two gigabit casts front and rear, and a A middle section made of aluminum and steel frames for storing batteries. It’s essentially the same three-piece approach the company has taken with its two recent new models, the Model Y crossover SUV and Cybertruck pickup truck.
Tesla has not previously been reported to be exiting all-in-one gigabit radio. The automaker did not respond to a request for comment.
The decision to delay a potential manufacturing breakthrough marks another example of Tesla cutting back on short-term spending as the company adjusts to declining sales and profit margins, weak global EV demand and increased competition from rival EV makers such as China’s BYD.Tesla last month laid off More than 10% of its global workforce.Some senior executives also Resigned or ever roll out.
Such measures also reflect fundamental strategic changeTesla is now more focused on developing self-driving cars than driving the massive growth in electric vehicle sales that many investors have been counting on.
Last fall, Tesla decided in late February to stop developing an all-new affordable car, commonly known as the Model 2, which would have been the first unibody vehicle the company has produced, people familiar with the matter said.Reuters reported it first Model 2 Cancel April 5th.
On April 23, Tesla’s financial report fell short of Wall Street expectations and stated that its Plans to make “more affordable” cars easier, faster Plans for the Model 2 have been put on hold and it is expected to cost $25,000 and be released in the second half of 2025.
Instead, Tesla officials said it will use existing platforms and production lines to build affordable models. During a conference call with investors, Chief Executive Musk declined to provide details about planned new products or their target prices.
According to a Reuters report on April 5, Tesla has not completely given up on the small vehicle platform planned for the Model 2. One of two sources familiar with the automaker’s gigabit broadcast business said suppliers are currently adopting Tesla’s three-piece process for the next generation of vehicles.
The automaker decided last fall to stop work on the more innovative and difficult one-piece casting process, both sources said. Two sources said the decision was made at the time to speed up development of the now-discontinued Model 2 and avoid any costly delays or manufacturing issues.
Large initial investment
Tesla and Musk say Gigabit Broadcast will help automakers reduce costs in the long run. But automaking experts say the process requires a large initial investment and is difficult and time-consuming to perfect.
Automaking experts say it’s not surprising that Tesla is taking a more conservative path on Gigabit Broadcast, which reflects in part the pain the company has experienced in launching complex and innovative cars on time. The automaker’s highly experimental Cybertruck went on sale last fall, with a price significantly higher than expected after significant delays while resolving manufacturing issues. Tesla is still trying to mass-produce the angular stainless steel pickup truck.
Terry Woychowski, president of US engineering firm Caresoft Global, said delaying the all-in-one gigabit broadcast would save the company from making large short-term capital investments in manufacturing and design. Teardown and engineering analysis of numerous vehicles including pull.
“Are they willing to do it all together? Of course they will, but at what cost?” Wojchowski asked.
James Womack, an automaking expert and former research director at the Massachusetts Institute of Technology, said Tesla’s Super Broadcast shrinkage reflects the company’s race last year to launch an all-new $25,000 car to catch up with the market it already had at the low end. Dominant Chinese electric vehicle manufacturer.
But Womack said advancing innovative production techniques would do little to help sell Tesla cars to consumers.
“From a public and buyer perspective, it’s not very exciting, and you don’t know if it’s really going to be a significant cost savings,” Womack said.
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