If you can’t beat them, buy them.
For years, a little-known company called Tooling & Equipment International (TEI) has helped Tesla push the boundaries of so-called “Gigacasting,” the process it pioneered that combines large car parts into a single piece, saving time and money.
Until 2023, that is. TEI is now part of General Motors after concluding a deal that may have flown under the radar but is an important part of the US automaker’s strategy to regain its footing in Tesla, four people familiar with the deal said.
By purchasing a company that specializes in sand casting techniques that accelerated the development of Tesla’s Gigacasting molds and allowed it to cast more complex components, GM began its own effort to make cars at a lower cost and more efficiently, as Tesla races to launch its $25 electric car. one thousand dollars. “, people said.
Without TEI, Tesla is relying more heavily on the three other foundry specialists it has used in the UK, Germany and Japan to develop huge molds needed for millions of cheap electric cars it plans to make over the next decade, the sources said.
Meanwhile, Tesla is struggling to find another sand casting specialist to replace TEI, or even develop that kind of expertise internally to reduce its reliance on outside suppliers.
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