Tesla’s Shift Raises Doubts on Elon Musk’s Affordable EV Plans

Tesla Elon Musk Affordable EV
Elon Musk’s pursuit of an affordable electric vehicle (EV) has encountered a notable setback. According to Reuters, Tesla has veered away from its intention to introduce a new manufacturing technique for its electric cars, raising doubts about Musk’s ambitions for low-cost EVs.

Tesla had been working on a method called “gigacasting,” aiming to utilize large presses to cast the underbody of an EV as a single piece. The company believed this approach could streamline production and reduce costs.

Sources disclosed to Reuters that Tesla has opted to stick with its existing casting method, which involves manufacturing the underbody of vehicles like the Model Y and Cybertruck in three separate pieces.

The gigacasting innovation was seen as pivotal to Tesla’s strategy to produce more affordable EVs. Tesla’s leading engineers had informed investors last year that the next generation of its electric models would cost 50% less to manufacture.

Musk has long teased plans for a $25,000 electric vehicle. In a conversation with automotive expert Sandy Munro last December, he expressed that plans for an affordable Tesla were well underway, touting a manufacturing revolution accompanying this car’s production.

Despite recent reports suggesting Musk might prioritize a Tesla robotaxi over a cheaper model, Musk denied this during Tesla’s latest earnings call, affirming the company’s commitment to fast-tracking the production of more affordable EVs.

While electric vehicle sales continue to surge in the US, reaching record levels last year, EVs still tend to be pricier on average than traditional combustion vehicles. This affordability gap remains a concern for many consumers.

Consequently, the race to develop an affordable, mass-market electric car has become a crucial focus for automotive manufacturers. Companies like Ford are also devising plans for budget-friendly EVs.

This pursuit is particularly significant for Tesla, which faces competitive pressure, especially from Chinese manufacturers like BYD offering cheaper alternatives.

In recent weeks, Tesla, under Musk’s leadership, has encountered significant challenges, including layoffs and a widespread recall of nearly every Cybertruck shipped to customers.

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