Tesla is addressing a global chip shortage by rewriting its vehicles' software code to support alternative chips, Chief Executive Officer Elon Musk said on Monday. The shortage has upended the auto industry at a time of historic demand for new cars, leading to factory shutdowns, longer wait times and higher prices.
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"We were able to substitute alternative chips and then write the firmware within a few weeks," Musk said.
That approach has helped Tesla maintain high production levels, delivering more than 200,000 vehicles to customers over the past three months, the company said. Tesla had revenue of $11.9 billion in the quarter, including $1.1 billion in sales.
See also: Tesla Semi truck: Ready for mass production?
Tesla isn't the only one feeling the effects of the global chip shortage. With demand for cars at an all-time high, automakers around the world are feeling the pinch in production. This week, Daimler and BMW said the chip shortage has forced them to shut down some of their assembly lines, which will reduce the production by tens of thousands of vehicles.
Musk said Tesla’s future growth will depend on a quick resolution to the global semiconductor shortage. “The global chip shortage situation remains quite severe,” he said. “For the rest of this year, the pace of growth will be determined by the slowest part of supply chain ,” which includes the wide range of chips used in Tesla vehicles.
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Tesla relies on chips to power everything from its airbags to the units that control the vehicles’ seat belts — which means Tesla is now facing a shortage of components essential to the vehicle’s safety features. “A big struggle this quarter has been the unit that controls the airbags and the seat belts,” Musk said. “And obviously a car can’t go anywhere without them.”
Musk sounds uncertain about the future. “It seems like things are improving,” he said, “but it’s hard to predict.”.
Source of information: theverge.com
