General Motors Acquires Key Tesla Supplier TEI In Gigacasting Push: Report

In a strategic move to bolster its electric vehicle (EV) production capabilities, General Motors Company GM has reportedly acquired Tooling & Equipment International (TEI), a crucial partner in Tesla Inc's TSLA gigacasting technology.

TEI has been instrumental in aiding Tesla to advance gigacasting, a process that involves casting large car body parts in one piece, reported Reuters.

The technique aims to streamline manufacturing while reducing costs. With TEI now under its wing, GM is poised to enhance its own manufacturing efficiencies, especially as Tesla accelerates towards launching a $25,000 EV.

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The report further noted Tesla is expected to increase its dependence on other casting specialists in Britain, Germany, and Japan. Tesla may also explore options to find new sand casting partners or develop this vital capability in-house to reduce reliance on external suppliers.

"General Motors acquired Tooling & Equipment International (TEI) to bolster its portfolio of innovations and secure access to unique casting technology," GM said in a statement to Reuters.

The automotive industry, including major players like Ford Motor Co F, Hyundai Motor Company HYMTF, and Toyota Motor Corp TM, is keenly observing Tesla's gigacasting approach, attempting to match the efficiency.

TEI, which won the 2023 Casting of the Year award for its work on GM's luxury Cadillac Celestiq EV, will continue operating as its own entity under GM's Global Manufacturing division.

Price Action: GM shares are trading lower by 0.78% at $27.98 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.