The Verge explains, "Tesla is closing in on a new manufacturing process that could significantly reduce costs and increase production of its electric vehicles."
Inputs that matter: Tesla's secret process starts with an updated mold-making system that uses 3D printing and industrial sand to shape molten metal.
- According to Reuters, aluminum alloys used to produce castings weren't behaving as expected. However, casting specialists altered the alloy formula and fine-tuned the cooling and heat treatment processes to make it work.
- Once achieved, Tesla could cast an entire underbody in one piece instead of two or more with the current process, instead of the hundreds of welded parts used in typical manufacturing.
- Elon Musk explained this new process will halve the manufacturing costs of its EVs.
The opportunity: Investors Business Daily reports, "Xiaomi has entered China's electric vehicle market with a blistering start, with the company touting 120,000 firm orders in 36 hours for its SU7 sedan, a Tesla (TSLA) Model 3 rival."
- "The SU7 will start at 215,900 yuan ($29,901) vs. 245,900 yuan ($34,056) for the entry-level Model 3."
- Lei Jun, Xiaomi's founder, chairman, and CEO, conceded that Xiaomi will lose money on every car sold.
- Tesla's new process will be used to make a $25,000 car to rival Chinese firms.
Zoom in: Reuters reports that Chinese electric-vehicle battery maker CATL is in talks with Tesla to license its battery technology instead of building its plant there.
- The Wall Street Journal report on CATL comes amid a global slowdown in EV demand.
- U.S. lawmakers are tightening their grip on the battery industry to prevent China-produced minerals or Chinese battery companies from winning electric vehicle tax credits.
Between the lines: According to the Wall Street Journal, Tesla has been awarded more sites than any other company to help build the nationwide fast charging network.
- While Tesla creates all of its own components for charging stations, the new manufacturing process and future batteries will be developed in partnership with CATL.
Follow the money: The Ringer reports, "America's Big Three automakers—Ford, General Motors, and Stellantis (which owns Dodge, Chrysler, and Jeep)—are in big trouble."
- Reuters reports, "Chinese electric vehicle maker BYD has set a 3.6- million-unit sales target for 2024, a jump of 20% from its record-breaking sales last year."
- "BYD stepped into the global spotlight after it became the world's biggest EV seller late last year, overtaking Tesla (TSLA.O)."
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Read More
- https://www.theverge.com/2023/9/14/23873345/tesla-gigapress-gigacasting-manufacturing-breakthrough
- https://www.investors.com/news/xiaomi-su7-ev-88898-orders-tesla-model-3-upgrade/
- https://www.bloomberg.com/news/articles/2024-03-28/tesla-s-tsla-new-unboxed-manufacturing-process-aims-to-cut-costs-50
- https://www.electrive.com/2023/09/04/tesla-is-the-biggest-winner-in-us-fast-charging-grants/
- https://www.reuters.com/business/autos-transportation/catl-talks-with-tesla-global-automakers-us-licensing-wsj-reports-2024-03-25/
- https://www.theringer.com/2024/3/26/24107134/american-auto-companies-dangerous-dilemma-electric-vehicles-hybrids
- https://www.reuters.com/business/autos-transportation/chinese-electric-vehicle-maker-byd-targets-20-jump-annual-sales-2024-03-27/