The chip shortage in the global auto sector is currently the biggest challenge for Tesla. That’s what CEO Elon Musk said on Twitter.
According to Musk, companies are now buying far more computer chips than they actually need for fear of running short. He compares this to the massive hoarding of toilet paper by consumers at the start of the corona pandemic. Musk says Tesla is now mainly struggling with problems with the supply of so-called microcontrollers that are used to control electronic equipment. “I’ve never seen anything like it. Every company is now reordering for fear of running out, just like the toilet paper shortage, but on an epic scale,” Musk said.
Tesla is in the process of raising the prices of its cars amid rising commodity prices and supply disruptions, Musk said earlier this week. Certainly a brand like Tesla is quickly hit hard by the chip shortage, since Tesla’s models are packed with high-tech technology. Tesla warned in January that it may have to cut production due to the chip shortage. At the presentation of the first quarter results, it reported that it had managed to avoid the consequences of the chip crisis until then, including by switching to other microcontrollers whose stock had been less hard hit. From Musk’s words, however, we can conclude that Tesla is now running into problems.
Due to the lack of chips, many major car companies have had to shut down factories or production lines. According to researcher AlixPartners, the global auto sector will miss an estimated $110 billion in sales this year due to the chip shortage. Chip companies such as Taiwanese TSMC have announced plans to increase production to help automakers. But the shortage is expected to continue for some time.