Elon Musk's plan for a cheap EV seems to have hit another major snag
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- Tesla has quietly backed away from plans to build EVs with a revolutionary new "gigacasting" method, per Reuters.
- This manufacturing innovation was seen as a key part of Tesla's plans to produce cheaper EVs.
- It raises further doubts over Elon Musk's plans for an affordable EV.
Elon Musk's transformation of Tesla continues at pace.
The automaker has reportedly pulled back on plans to roll out a revolutionary new manufacturing method for its electric cars, per Reuters. A move that casts further doubt on Elon Musk's low-cost EV ambitions.
Tesla had been developing a new "gigacasting" method that would allow it to use enormous presses to cast the underbody of an EV in a single piece to simplify manufacturing and cut costs in the long term.
However, sources told Reuters that the company had backed away from the plans and decided to stick to the method of casting that it used to build the Model Y and the Cybertruck, with the underbody made in three separate pieces.
The gigacasting innovation was seen as a key part of Tesla's plans to produce cheaper EVs. Tesla's top engineers told investors last year that the company's next generation of electric models would cost 50% less to make.
Musk has been hinting at plans to build a $25,000 electric vehicle for years. In December, he told automotive expert Sandy Munro that plans for an affordable Tesla were "quite advanced."
"The revolution in manufacturing that will be represented by that car will blow people's minds," Musk said. "It is not like any car production line that anyone's ever seen."
However, reports earlier this month suggested that the billionaire had abandoned plans to build a cheaper model in favor of a Tesla robotaxi.
Musk denied this and said in Tesla's latest earnings call that the company would accelerate construction of cheaper EVs.
While sales of EVs continue to rise in the US, hitting record levels last year, EVs remain more expensive on average than their combustion counterparts — something that has proved an issue for many consumers.
That has made the race to build an affordable mass-market electric car the crucial next frontier for automotive companies, with Ford also pursuing its own cheap EV plans.
It's especially important for Tesla, which has come under pressure from Chinese manufacturers abroad, such as BYD, which offer cheaper models.
The Musk-run automaker has experienced significant upheaval in recent weeks, with Tesla conducting layoffs and being hit by a recall of nearly every Cybertruck shipped to customers.
Tesla did not immediately respond to a request for comment made outside normal working hours.