Tesla Faces Setback in Gigacasting as GM Snatches Casting Supplier

Tesla’s innovative approach to vehicle production has allowed it to stay ahead of the competition in terms of time and cost. One of Tesla’s key strategies has been the use of larger castings for vehicle bodies. However, it seems that Tesla has hit a setback in this area. General Motors (GM) has acquired one of Tesla’s top casting suppliers, Tooling & Equipment International (TEI), which has been instrumental in the development and production of Tesla’s Model Y.

This acquisition by GM is seen as a move to make cars more efficiently and at a lower cost, similar to Tesla’s gigacasting strategy. It seems that GM is taking a page out of Tesla’s book, not just in terms of using large castings but also in vertical integration.

While Tesla has three more casting suppliers, the loss of TEI may lead to less competition and potentially higher prices for Tesla. Tesla is now scrambling to find another sand casting specialist to fill the role TEI played or develop the necessary expertise in-house to reduce reliance on external suppliers.

It’s unclear whether this setback will significantly impact Tesla’s production plans for the Model Y, Cybertruck, or its upcoming affordable EV. However, the fact that Tesla is actively seeking a replacement for TEI suggests that it could pose a challenge.

On the other hand, GM’s acquisition of TEI showcases the company’s bold move in following Tesla’s footsteps and making strategic advancements in casting technology. GM has been working with TEI since 2021, building a part for its Cadillac Celestiq EV.

Overall, while this development may present a setback for Tesla’s gigacasting strategy, it remains to be seen how significant the implications will be. However, it is clear that GM is making bold moves to enhance its own casting capabilities and compete in the EV market.


1. What is gigacasting?

Gigacasting is the strategy employed by Tesla, where larger and more complex vehicle components are made using casting techniques. This approach allows for faster and more cost-effective vehicle production.

2. Which casting supplier did GM acquire from Tesla?

GM acquired Tooling & Equipment International (TEI), one of Tesla’s top casting suppliers.

3. How is Tesla responding to the loss of TEI?

Tesla is actively seeking another sand casting specialist to fill the role previously played by TEI or develop the necessary expertise in-house to reduce reliance on external suppliers.

4. How is GM following Tesla’s footsteps?

GM is not only adopting larger castings in its vehicle production but also focusing on vertical integration, similar to Tesla’s approach. The acquisition of TEI is a step towards enhancing GM’s casting capabilities and making cars more efficiently and at a lower cost.