Tesla's gigacast greatly reduces parts, welds and vehicle production time
Tesla
New insights into Tesla's manufacturing innovations have emerged, suggesting the automaker is not just nearing but actively implementing groundbreaking advancements in its gigacasting technology. Reports from the Shanghai Securities News and posts from X.com user @zhongwen2005 unveil Tesla's successful adoption of an upgraded gigacasting process at its Shanghai Giga Factory, focusing primarily on the Model Y's rear bottom plate assembly system.
This revelation is a pivotal update to earlier reports, indicating that Tesla is realizing its commitment to unboxed manufacturing and is on the brink of revolutionizing vehicle production. The upgraded gigacasting technology allows the die-casting of almost the entire complex underbody of an electric vehicle in one piece, significantly reducing production costs and assembly components.
New Technology Now in Use
According to the new information, the application of this integrated die-casting technology has led to a remarkable 40% reduction in related production costs and over 10% weight savings compared to traditional methods. These advancements are especially pertinent as Tesla explores manufacturing possibilities for its forthcoming $25,000 car, which presents an ideal opportunity to deploy this one-piece casting innovation.
Tesla's pioneering approach, involving 3D printing, industrial sand, and the development of specialized alloys, is further fine-tuned with the introduction of version 2.0 of its integrated die-casting technology. The amalgamation of rapid prototyping, material innovation, and advanced casting techniques underscores Tesla's relentless pursuit of manufacturing excellence, setting the stage for a large-scale manufacturing evolution.
This strategic shift and technological progression are aligned with the insights shared in Walter Isaacson's biography of Elon Musk, depicting a transition in Tesla's operational hubs. The Giga Texas facility emerges as a focal point for the development and perfection of this next-generation EV platform, with Giga Mexico anticipating the subsequent housing of the new technology.
The Competition is Playing Catch-up
As the electric vehicle market grows increasingly competitive, such innovations are crucial. The upgraded gigacasting technology places Tesla at the forefront of manufacturing efficiency and sets a precedent for other manufacturers. Toyota recently unveiled its own gigapress, and Chinese EV makers, including Xpeng and Geely's Zeekr, are adopting gigapressing technology to decrease vehicle weight and cut costs.
As Tesla continues to refine and implement its upgraded gigacasting technology, the company is not merely taking a step but making a significant leap toward redefining automotive manufacturing. The integration of this advanced technology at its Shanghai plant illustrates the tangible strides Tesla is making in realizing Elon Musk's vision of halving production costs and making electric vehicles more affordable and accessible.
The latest developments confirm that a transformative moment in EV manufacturing is not just on the horizon but actively unfolding. Tesla's commitment to innovation and the successful application of upgraded gigacasting technology underscore its position as a leader in the automotive industry, driving towards a future where electric vehicles are increasingly revolutionary and attainable.
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According to a report from Reuters, obtained from three sources with inside knowledge, Tesla is delaying the launch of its more affordable model - the cheaper variant of the Model Y. Tesla has promised the launch of a more affordable model in the first half of 2025, but we have yet to see anything come to light.
Tesla has been especially secretive with new product launches - the fact that nobody leaked the announcement of the Robovan or the final design of the Cybercab for We, Robot shows Tesla’s commitment to keeping things under wraps.
Tesla’s Affordable Vehicle Plan
The Reuters report sheds some light on what Tesla's immediate affordable vehicle plans might actually entail with a changed approach: a stripped-down version of its best-selling Model Y SUV, internally code named E41. This approach seems to align with earlier speculation that Tesla might opt for more affordable versions of existing platforms rather than launching an entirely new vehicle like the often-rumored "Model Q" or "Project Redwood."
According to Reuters' sources, the US production launch for this cheaper Model Y has slipped. Instead of the first half of 2025, the target for the start of US production is now reportedly somewhere between Q3 2025 and early 2026. The specific reason for this delay wasn't made clear in the report.
‘E41’ Speculations
Despite the delay, Tesla appears to have set a production target for the vehicle in the US, aiming for 250,000 vehicles in 2026. This suggests that Tesla is banking on this being a high-volume vehicle, and expects significant demand at the price point. The report also reiterates previous accounts that this affordable Model Y variant is planned for eventual production in China and Europe as well.
Sources familiar with the Chinese plans indicated a 2026 launch there, with the vehicle potentially being smaller and costing 20% less to produce than the current refreshed Model Y. The timing for a European rollout remains unclear, but would likely follow a Chinese launch.
Affordable Model 3
Interestingly, the Reuters report also mentions, based on the three sources, that Tesla is planning a similar strategy for the Model 3, intending to launch a bare-bones version. This will likely be an even more cut-down version of the Mexican Model 3. This further supports the idea that Tesla's path to affordability, for now, involves cost-optimizing its existing popular models.
These more affordable vehicles will be crucial for Tesla. The company reported its first annual delivery decline recently, and faces analyst expectations of another drop this year. Factors cited include increased Chinese competition and potential brand reputation impacts. A cheaper Model Y and Model 3 could help attract new customers.
Strategy Pivot
This strategy also exists in the context of Tesla's potential pivot away from a dedicated, all-new $25,000 platform. Elon had previously indicated that the project was deprioritized in favor of focusing resources on developing the Robotaxi network and Cybercab.
The E41 and cheaper Model 3 appear to be the revised approach to hitting lower price points using existing manufacturing lines and platforms, albeit likely not reaching the originally hoped-for $25,000 base price - perhaps after the Federal EV Rebate.
Tariff Impact
Finally, the report touched upon the challenging geopolitical and economic landscape, particularly potential US tariffs. Automakers are wary of rising costs from tariffs on imported vehicles and parts. Tesla has reportedly increased its North American sourcing for many components over the past couple of years, a move that could lessen the tariff impact on a US-produced E41.
This contrasts with recent reports suggesting Tesla suspended plans to ship some components from China for the Cybercab and Semi programs, specifically due to tariff concerns. This highlights the complex supply chain calculations Tesla is making as it tries to balance production cost, tariffs, and vertical supply chain integrations.
With Tesla's Q1 2025 earnings call scheduled for Tuesday, everyone, including us, will be keenly listening for the next steps on these crucial affordable models.
Tesla has been quietly building something pretty unique on the streets of Hollywood—and we’ve been keeping a close eye on it. That’s right: the long-anticipated Tesla Hollywood Drive-In, Diner, and Supercharger is shaping up to be one of the most creative approaches to EV charging yet.
But this isn’t your average Supercharger site. It features a retro-futuristic, 24-hour diner and an outdoor movie theater, blending the charm of the 1980s with the tech-forward vibe of the 2020s.
Tesla hacker Greentheonly managed to spot some new evidence of changes within Tesla’s 2025.8.6 software build, which includes a new modal for “Charger Diner Controls”. While there isn’t anything to activate this new modal just yet, it is an indication of how Tesla intends to integrate the experience right into each and every Tesla.
The text in the modal reads: “Plug in, place your order, recharge” - which means that once you arrive and are plugged in, you’ll be able to place your order - and likely pay through Tesla’s payment system. It seems like this will all be done through either the Tesla app or the vehicle’s tocuh screen. No need to fumble with a separate app or pull out your wallet.
This is definitely a level of integration you just can’t have anywhere else - and just like any other Supercharger site, the Tesla Diner will appear as a suggested site for charging when you’re navigating or looking around the Hollywood area.
This is our best look yet at the two 45-foot LED screens at @Tesla's upcoming Hollywood diner and Supercharger.
We can also see the second Supercharger lot on the left with solar canopies. This will be one of the largest Supercharging spots in North America. pic.twitter.com/aWUe67M5vw
Those two absolutely gigantic 45-foot LED screens have now been turned on for the first time, meaning that Tesla is likely close to opening the Supercharger site. The screens were spotted displaying some test patterns, as well as some Tesla-themed content. It really brings the construction site to life - and it's the clearest sign that the Diner is well on its way to completion.
We’re hoping that this first Tesla Diner sees plenty of success - and that Tesla begins opening more of these types of facilities throughout North America, and eventually globally. Given Tesla’s penchant for unique Superchargers, we imagine this could truly be the case one day.
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