Tesla pulls back on gigacasting ambitions as cost-cutting measures continue (NASDAQ:TSLA)

Implications of the shift in strategy at Tesla (Nasdaq: Tesla) still feels. Following news that Tesla (TSLA) is laying off its Supercharger team, the Austin-based company is now reportedly backing away from plans to manufacture high-volume Gigacasts.

sources He told Reuters that Tesla (TSLA) will slow down work on the radical industrialization process, which was pioneered by the Idra Group. The goal of gigacasting was to cast large portions of the car's underside in one piece, potentially for use in the mass-market Model 2. The expectation now is that Tesla (TSLA) will continue with its current three-piece undercarriage, with front and rear Gigacast sections plus an aluminum and steel middle section for battery storage. It is worth noting that Tesla (TSLA) Management discussed the benefits of advancing conference call streaming in 2022 and 2023.

Morgan Stanley reminded investors that Tesla's (TSLA) leadership has a history of ramping up intensity when its back is against the wall. “Investors should expect a volatile streak as the company enters an unfamiliar phase in its strategic life cycle,” analyst Adam Jonas warned.

Tesla (TSLA) shares fell. 1.2% In trading on Wednesday afternoon. The recent rally narrowed the EV stock's annual loss to -27.1%. TSLA stock is still trading below its 100-day and 200-day moving averages, but the RSI is back above 50, indicating rising momentum.