[News Terms] Tesla Abandons Full Implementation of 'Giga Casting'

Cost Reduction Possible but Initial Investment Huge
"Even with Full Implementation, Large-Scale Cost Savings Uncertain"

'Giga casting' is an innovative automobile manufacturing technology. Instead of assembling and welding small parts in detail, it is a manufacturing method that produces an integrated chassis all at once.

The American electric vehicle company Tesla introduced this method in 2020 for the production of the sport utility vehicle (SUV) Model Y. Rather than making the car body by drilling numerous holes in steel plates and assembling and welding them one by one, it uses a massive press (giga press) applying 6,000 to 9,000 tons of pressure to stamp out the entire body made of a special aluminum alloy material.

Tesla's factory, an electric vehicle company located in Fremont, California, USA.
[Photo by AFP/ Yonhap News]

By adopting the giga casting method, Tesla greatly simplified the manufacturing process. The amount of welding and bolts was reduced, and the number of robots in the assembly process was cut by about 600, significantly improving operational efficiency. With the disappearance of numerous small parts, it is reported that material waste and greenhouse gas emissions generated during the manufacturing process also decreased.

Since the introduction of giga casting, global automakers such as Hyundai Motor Company, Toyota, and Volkswagen have been competing to adopt and apply this technology. It is evaluated as suitable for electric vehicle production because it speeds up production, reduces costs, and decreases the body weight during manufacturing.

However, since an integrated chassis is used, even if only a part is damaged, the entire unit must be replaced. Also, while advantageous during production, enormous investment is required to establish the initial production facilities.

According to major foreign media on the 1st (local time), Tesla has abandoned plans to fully implement the next-generation manufacturing process, giga casting. It is interpreted that Tesla, which is cutting costs amid the recent recession, feels burdened by the massive investment in production facilities.

Instead of the giga casting method that Tesla has invested in and developed for years, it is reported that Tesla has adopted a method of producing the chassis supporting the body in three parts?the front, rear, and middle battery housing?and then joining them later.

Elon Musk, CEO of Tesla, is giving a speech at the opening ceremony of the 'Gigafactory' built in March 2022 in Gruenheide, Brandenburg near Berlin, Germany.
[Photo by EPA/ Yonhap News]

This means Tesla has withdrawn the plan to fully implement the giga casting process that stamps out the chassis all at once using large equipment. Instead, Tesla produces the front and rear of the vehicle as integrated units using the giga casting method. It is known that the current Model Y and Cybertruck are also produced in this way.

Tesla's decision is analyzed as part of a management strategy to reduce costs amid sluggish sales performance and intensified price competition. Last month, Tesla cut 10% of its global workforce, and resignations and dismissals of executives have followed. Tesla CEO Elon Musk recently laid off most of the Supercharger team, about 500 people including Rebecca Tinuchi, who was in charge of Tesla's charging infrastructure.

Terry Boykovsky, president of the American engineering firm CareSoft Global, said, "Everyone knows that integrated giga casting is good. If giga casting is put on hold, you don't have to make a huge initial investment."

James Warmack, a vehicle manufacturing expert and former research director at MIT, said, "From the perspective of the public and buyers, giga casting technology is not very interesting," and evaluated, "Even if Tesla fully implements giga casting, it is uncertain whether large-scale production cost reductions as expected will be possible."