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New breakthroughs at Tesla could halve EV costs

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Tesla, led by Elon Musk, is on the verge of a groundbreaking technological advancement that could revolutionise the way electric vehicles (EVs) are manufactured. 

The company has combined several innovations in a bid to significantly reduce production costs, aligning with Musk’s goal of halving the expenses associated with EV manufacturing, sources familiar with the matter told Reuters.

One of Tesla’s key innovations is the use of massive presses, exerting 6,000 to 9,000 tons of clamping pressure, to mould the front and rear structures of its Model Y through a process known as “gigacasting.”

This approach has already proven successful in reducing production costs, putting competitors in catch-up mode.

Now, Tesla is closing in on another breakthrough: the ability to die-cast nearly the entire complex underbody of an EV in a single piece, rather than relying on around 400 individual parts, as is the norm in conventional cars.

This innovation is at the core of Tesla’s “unboxed” manufacturing strategy, part of Musk’s ambitious plan to produce tens of millions of more affordable EVs in the next decade while maintaining profitability.

Tesla’s unboxed model involves creating large sub-assemblies of a car simultaneously and assembling them later.

However, specifics about the size and composition of these modular blocks remain subject to speculation.

Game Changer

Experts in the automotive industry view this development as a game-changer.

Terry Woychowski, President of U.S. engineering firm Caresoft Global and a former executive at General Motors (GM), noted that gigacasting the underbody of an EV has significant implications for the industry but also acknowledged the substantial challenges involved in such a feat.

Sources suggest that Tesla’s new design and manufacturing techniques could allow the company to develop a car from scratch within 18 to 24 months, a timeline significantly shorter than what most rivals currently require, which typically ranges from three to four years.

This innovation could potentially be applied to Tesla’s upcoming small EV, slated for a launch with a $25,000 price tag by the middle of the decade.

Tesla is expected to make a decision on whether to proceed with die-casting the platform as a single piece, possibly as soon as this month, though adjustments may occur during the design validation process.

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