Tesla Addresses Insurer Concerns in Move to Calm Megacast Pioneer Fears

Tesla Addresses Concerns Over Repair Costs of Megacasting Underbody

Introduction

Tesla is taking steps to address criticism regarding the repairability of its ‘megacast’ underbody sections, which has led to increased insurance costs. The American electric vehicle (EV) manufacturer has pioneered the use of giant casting machines, known as ‘gigapresses’, to create a single aluminium piece that replaces nearly 100 underbody parts, reducing costs and improving production efficiency.

Industry Split

The use of megacasting has divided the automotive industry. Some manufacturers, including Toyota, Hyundai, and Ford, have expressed their intention to adopt this technique for future models. However, others, such as Volkswagen, remain cautious due to concerns about repairability.

Repair Concerns

One of the main concerns raised by manufacturers, repairers, and insurers is the economic viability of repairing the cast piece in the event of even minor crashes. A Model Y owner discovered a crack in the front casting after it was declared safe by a Tesla repair center. The German Insurance Association (GDV) also expressed doubts about the ability to economically repair rear-ended Model Ys, leading to increased insurance costs.

Thatcham Research Testing

In response to these concerns, Thatcham Research, located near Newbury in the UK, has obtained a megacast section and a complete Model Y for testing purposes. Initial observations have given Thatcham hope that Tesla has addressed the repairability issue. Tesla is providing replacement rear-end sections to repair centers and offering detailed repair guides for the cast part not covered by replacements. If necessary, repair centers can purchase the entire cast aluminium piece at a relatively low cost.

Industry Response

Tesla’s experience with megacasting has prompted other manufacturers to explore this technology. Toyota is experimenting with the technique and has developed a faster method for changing moulds. Hyundai plans to adopt a ‘hypercast’ method starting in 2026. Chinese companies, such as Xpeng, Zeekr, and Nio, are already using single-piece castings in their vehicles. General Motors and Ford in the US have also expressed their readiness to embrace megacasting.

Future Outlook

Industry analysts predict that by 2030, megacast pieces will replace 15% to 20% of traditional body-in-white stampings. However, there are still concerns about the quality and cost-effectiveness of this manufacturing method. Suppliers like Idra are developing high-pressure casting machines, but some manufacturers prefer to order parts rather than invest in their own equipment. The automotive sector is actively addressing these challenges and working towards solutions.

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