Tesla (NASDAQ:TSLA) is shaking things up again. Not long after cutting its Supercharger team, the electric car giant announced that it will slow down its gigacasting manufacturing plans due to cost-cutting measures.
Tesla had initially planned to revolutionize car manufacturing by casting large parts of a car’s underbody in one go in order to streamline production for the much-talked-about budget-friendly Model 2. However, according to Reuters, Tesla will stick with current approach of combining two large cast pieces with a middle section built for battery storage.
The pivot away from gigacasting marks a big shift in strategy for Tesla, which had been touting the technology’s potential in recent years. Morgan Stanley analyst Adam Jonas chimed in on the latest developments and suggested that Tesla is no stranger to cranking up the pressure when facing challenges. He also warned investors to prepare for volatility as the company “enters an unfamiliar phase in its strategic lifecycle.”
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on Telsa stock based on seven Buys, 16 Holds, and nine Sells assigned in the past three months. Year-to-date, TSLA has plunged by more than 25%, and the average TSLA price target of $171.99 implies 6.3% downside risk from current levels.
