Reuters reports Thursday, citing unnamed sources, that electric automaker, Tesla (NASDAQ:TSLA) is on the verge of a major technological breakthrough that could change the way electric vehicles (EVs) are made.
According to the report, Tesla has integrated a range of innovations to achieve a technological milestone that has the potential to revolutionize its electric vehicle manufacturing process, aligning with Elon Musk's goal of reducing production expenses by half.
As per the unnamed sources, the electric vehicle giant is edging closer to a breakthrough that would enable the company to employ die-casting techniques to create nearly the entire intricate underbody of an electric vehicle as a single unit, as opposed to the approximately 400 components required in a conventional car.
The innovation is key to the company’s "unboxed" manufacturing strategy unveiled by Musk back in March. The technique is key to his plan to produce tens of millions of cheaper EVs without sacrificing profit.
President of engineering company Caresoft Global, Terry Woychowski, said if Tesla managed to gigacast most of the underbody of an EV, it would further disrupt the way cars are designed and manufactured.
"It is an enabler on steroids. It has a huge implication for the industry, but it's a very challenging task," said Woychowski.
"Castings are very hard to do, especially the bigger and the more complicated," he added.
The sources claim that the new design and manufacturing technique means that Tesla could potentially develop a car from the ground up in 18 to 24 months, leaving competitors in the dust, as it usually takes between three to four years to complete this process.
Three of the sources mentioned that Tesla may reach a decision regarding the production of the platform as a single die-cast piece as early as this month. However, it's worth noting that even if they proceed with this approach, the final product might undergo modifications during the design validation phase.
Shares of TSLA are up 1.43% in mid-day trading Thursday.