Financial Associated Press, May 2 (editor Huang Junzhi) according to two people familiar with the matter revealed to the mediaCrashbandicoot4it'sabouttimeandroidTesla has abandoned plans to innovate in its pioneering gigabit casting (gigacasting, collectively referred to as "integrated die casting") process, another sign that it is cutting costs amid declining sales and increased competition.
"Integrated Die casting" is a cutting-edge technology that aims to simplify the manufacturing process and reduce costs by casting most of the bottom of the car body as a whole by using a large press.
You know, in a typical car, the bottom of the body should be made up of hundreds of separate parts. As a result, the technology was expected to revolutionize the way cars are made, and Tesla has been in a leading position in this field.
Now, however, Tesla is said to have stopped this innovative plan and chose to return to the more traditional three-stage casting method. It is reported that Tesla recently launched two new models Model Y cross-border SUV and Cybertruck pickup trucks have adopted the traditional three-stage casting method.
Tesla's move is another example of cutting short-term spending as the company adjusts to falling sales and profit margins, weak global demand for electric cars and increased competition in the Chinese market. Tesla laid off more than 10 per cent of its global workforce last month, and some executives resigned or were fired.
Terry Woychowski, president of Caresoft Global, an American engineering company, said that ending the "integrated die casting" process would save the company from making large short-term capital investments in manufacturing and design.
At the same time, the moves also reflect a fundamental strategic shift for Tesla, which is now more focused on developing self-driving cars than simply driving a surge in electric vehicle sales, although many investors are more focused on the latter.
Tesla has not commented publicly on the matter. But analysts say the decision will undoubtedly have a profound impact on the company's mode of production and cost structure. At the same time, it also reflects Tesla's flexible adjustment in response to market changes.
James Womack, a car manufacturing expert and former research director at the Massachusetts Institute of Technology (MIT), said promoting innovative production technology did little to help Tesla's car sales.
"from a public and buyer's point of view, it's not very exciting," Mr. Womack said. "you don't know if it's really going to save a lot of money."
(Huang Junzhi, Financial Associated Press)
