Elon Musk's plan for a cheap EV seems to have hit another major snag

• Tesla has quietly backed away from plans to build EVs using a new "gigacasting" method, per Reuters.

• This manufacturing innovation was seen as a key part of Tesla's plans to produce cheaper EVs.

• It raises further doubts over Elon Musk's plans for an affordable EV.

Elon Musk's transformation of Tesla continues at pace.

The automaker has reportedly pulled back on plans to roll out a new manufacturing method for its electric cars, Reuters said — a move that casts further doubt on Elon Musk's low-cost EV ambitions.

Tesla had been developing a new "gigacasting" method that would allow it to use enormous presses to cast the underbody of an EV in a single piece. The company thought this could simplify manufacturing and cut costs.

Sources told Reuters that Tesla has backed away from these plans and decided to stick to the casting method that it used to build the Model Y and Cybertruck, with the underbody made in three separate pieces.

The gigacasting innovation was thought to be a key part of Tesla's plans to produce cheaper EVs. Last year, Tesla's top engineers told investors that the company's next generation of electric models would cost 50% less to make.

Musk has been hinting at plans to build a $25,000 electric vehicle for years. In December, he told Sandy Munro, an automotive expert, that plans for an affordable Tesla were "quite advanced."

"The revolution in manufacturing that will be represented by that car will blow people's minds," Musk said during an interview with Munro. "It is not like any car production line that anyone's ever seen."

Reports earlier this month have suggested that the billionaire has set aside plans to build a cheaper model in favor of getting a Tesla robotaxi to market.

Musk has denied this and said on Tesla's latest earnings call that the company would accelerate the construction of cheaper EVs.

While sales of electric vehicles continue to rise in the US, hitting record levels last year, EVs remain more expensive on average than their combustion counterparts — something that has been an issue for many consumers.

This has made the race to build an affordable, mass-market electric car the crucial next frontier for automotive makers, with companies like Ford also developing plans for cheap EVs.

It's especially important for Tesla, which has come under pressure abroad from Chinese manufacturers like BYD, which offer cheaper models.

The Musk-run automaker has experienced significant upheaval in recent weeks, with Tesla conducting layoffs and being hit by a recall of nearly every Cybertruck shipped to customers.

Tesla did not immediately respond to a request for comment made outside normal working hours.

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