Tesla Inc’s TSLA Giga Press approach is gaining popularity with the automotive industry as more players in China aim to replicate the technology, Electrek reported on Tuesday, citing a key supplier.
What Happened: Tesla supplier LK Technology has worked with the electric vehicle maker on the casting technology and says six China-based automakers want to deploy a similar technology in their factories next year.
“In addition to Tesla, LK will supply similar giant casting machines to six Chinese companies by early 2022 as more automakers adopt Tesla’s way of making cars,” the report noted, citing Liu Siong Song, an engineer at LK Technology.
See Also: Tesla Said To Be Investing Up To $188M To Ramp Up Capacity At Giga Shanghai
Why It Matters: The Elon Musk-led Tesla has been investing heavily in casting and alloy technology and uses a series of big die casting machines to make car bodies with just a few massive casted parts, a trend that is now catching on in the auto industry.
The Giga Press is seen as Tesla's latest leap in manufacturing and is used to produce the Model Y. The technology reduces the Model Y's front and rear casting from hundreds of parts down to just two.
Price Action: Tesla shares closed 0.68% higher at $1,144.76 a share on Tuesday.
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