GM bought Tesla gigacasting supplier Tooling & Equipment International (TEI). The big automaker thinks this will help it catch up to Tesla as the leader in electric vehicles.
GM reportedly bought TEI because the business helped Tesla develop gigacasting, its manufacturing approach, which has enabled its plants to produce cars and raise production significantly in recent years.
Tesla uses gigacasting to make its cars safer in accidents.
Reuters says that GM bought TEI and that it is “a key part of the U.S. automaker’s strategy to make up ground on Tesla.” Four individuals who knew about the deal said this was the case.
For “sand casting techniques,” TEI is especially useful. Tesla used 3D printers to manufacture molds from industrial sand, which could be altered safely, according to a September article.
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Tesla Scrambles for Sand-Casting Specialist to Produce $25,000 Electric Vehicle
The report says that Tesla is currently scrambling to find a new sand-casting specialist. It will also be relying on other casting companies in Britain, Germany, and Japan to make the molds it needs to make millions of its $25,000 electric vehicles. Elon Musk recently revealed that the automobiles would be produced in Germany, sparking interest in the car.
Tesla is also thinking about hiring people “in-house” to cut down on its use of outside companies, which it has done in the past to save money.
If GM’s move was for any reason, it was strategic. It will now be able to see for itself how Tesla has improved its manufacturing methods over the past few years to boost production growth.
Tesla has been able to keep up with demand for the Model 3 and Model Y during their ramp-up processes by improving the way they make cars and increasing production every three months.
This move by GM could help it make more electric vehicles (EVs). It might be smart for the company to learn from the leader in EVs.