Tesla gigacasting to make electric vehicle production cheaper than gasoline by 2027
The automotive landscape is on the brink of a significant transformation, with the promise of making electric vehicle (EV) production cheaper than gasoline cars by 2027, thanks to innovations like Tesla’s gigacasting techniques. This breakthrough could not only change how vehicles are made but also make EVs more accessible to the general public.
Innovations in production
A recent study by Gartner reveals that the introduction of new production techniques, including gigacasting, could significantly reduce the manufacturing costs of EVs. Gigacasting, a revolutionary technique pioneered by Tesla, involves manufacturing large parts of the vehicle’s structure in a single piece, simplifying the production process and reducing labor and material costs.
Implications for the automotive industry
The widespread adoption of these techniques could have a profound impact on the automotive industry, forcing traditional manufacturers to adopt new methods to remain competitive. As Pedro Pacheco, Vice President of Research at Gartner, highlighted, the entry of new market players is forcing legacy automakers to rethink their production processes to survive.
Production costs versus battery costs
One of the key findings of the Gartner report is that EV production costs could decrease more rapidly than battery costs. This means that the financial accessibility of EVs could improve faster than anticipated, although this could also lead to an increase in repair costs in the event of severe accidents.
Tesla’s response
Tesla, through its Vice President of Public Policy and Business Development, Rohan Patel, has already highlighted the financial benefits of its electric vehicles. With competitive leasing offers for models like the Tesla Model 3 and Model Y, Tesla demonstrates that the affordability of EVs is not a distant promise but a current reality.
Consequences for consumers and the industry
The increasing use of advanced production technologies could also mean that the average cost of battery repairs and serious accident repairs could rise by about 30% by 2027. This could have implications for insurance and the rate of vehicles declared total losses after an accident.
Furthermore, Gartner predicts that up to 15% of electric vehicle manufacturers founded in the last decade could go bankrupt or be acquired by 2027. This market consolidation highlights the importance for companies to offer competitive products and services to survive in an increasingly saturated sector.
The future of electric vehicles
Despite these challenges, the future of electric vehicles looks promising. With a forecast of 18.4 million units shipped this year and an expected increase to 20.6 million units in 2025, the EV sector continues to grow. This growth comes with a paradigm shift, from the “gold rush” era of EVs to a “survival of the fittest” era, where only the most innovative and responsive to early adopters will survive.
In conclusion, the automotive industry is on the verge of a revolution, led by innovations like Tesla’s gigacasting, which promise to make electric vehicles not only more environmentally friendly but also more financially accessible. This transformation could not only change the face of global mobility but also encourage wider adoption of electric vehicles, contributing to a more sustainable future.