Musk Is Giving Up On Tesla’s Biggest Advantage
It seems like a bananas move, but it actually makes sense. At least to Musk.
What is Tesla’s biggest industry advantage? Is it self-driving AI? It’s charging network? It’s in-house 4680 battery? Well, there is actually a good argument that it is actually gigacasting. This innovative technology allows Tesla to build a chassis far quicker and cheaper than any other automaker. In fact, Tesla claims gigacasting alone reduces the cost of producing a chassis by 40%! It’s thanks to gigacasting that Tesla was once one of the most profitable car companies on the planet, and how they have been able to slash the price of their vehicles over the past few years without totally wiping out their profits. In fact, gigacasting has been so successful for Tesla that the rest of the industry is now scrambling to catch up and implement this same technology. So it came as a huge surprise when, a few days ago, Reuters reported that Tesla had dropped their plans to take gigacasting to the next level. So, why has Musk done this? And will this harm Tesla?
Let’s quickly recap what gigacasting actually is.
Despite what you might have heard, Tesla didn’t invent gigacasting. They were merely the first to adopt it. The idea is to make the chassis production far more simple and cheaper. Regular…
