Elon Musk confirmed that even his Tesla company is not invulnerable when it comes to chip shortages. Because of this, the popular tech CEO announced that it is now in talks with other chip manufacturers to make advance payments.
A Tesla showroom stands in the Meatpacking district in Manhattan on June 6, 2018 in New York City. Tesla stock had its best day since November 2015 on Wednesday rising more than 9.5 percent after the company revealed it is nearing its Model 3 weekly production rate. Also, in a vote shareholders backed Elon Musk as chairman and CEO.
Tesla's CEO confirmed the manufacturer's plans during an interview last Wednesday, May 26. This is an unusual move since most electric manufacturers are not paying computer chip developers upfront.
Although some experts and other EV analysts say that this is very different from the other plans of the giant EV manufacturer, they said that if Tesla will continue its chip advance payment move, this innovation has a high chance to solve the company's processor shortage issue.
Elon Musk's Plans
According to Business Insider's latest report, Elon Musk said that Tesla can solve its chip shortage issue by paying upfront, and purchasing its own semiconductor plant.
Tesla and SpaceX CEO Elon Musk leaves the Westhafen Event & Convention Center after attending the CDU/CSU faction meeting on September 2, 2020 in Berlin, Germany. Germany. Musk is currently in Germany where he met with vaccine maker CureVac, with which Tesla has a cooperation to build devices for producing RNA vaccines, yesterday. Today, he is rumoured to also be visiting the site of the new Gigafactory under construction near Berlin.
Also Read: Tesla Now Activates Cabin-Facing Camera to Ensure Drivers are Paying Attention When on Autopilot
Elon Musk did this after he discovered that Tesla is also one of the companies that are facing difficulties caused by the massive chip shortage.
During the company's earnings call, Tesla CEO Elon Musk said supply-chain issues were causing serious difficulties for the electric carmaker.
Aside from this, the tech CEO also said that the giant Tesla is also having some production issues. And now, some rumors claimed that the giant EV maker is already in its preliminary planning stage to buy its own chip plant.
On the other hand, some critics and analysts claimed that Tesla will have to pay more than it is paying now if it wants to make an upfront transaction.
Other Changes Planned by Tesla
Aside from making upfront chip payments, CNBC reported that Tesla also plans to replace its radar sensors for its autopilot feature.
The company confirmed that it will soon rely on using vision-based sensors. However, this could be bad news since if Tesla really wants to do this, it must downgrade some functionalities of its current electric car models. Although this is the case, some experts claimed that the downgraded features could only be temporary.
For more news updates about Elon Musk and his next innovations, always keep your tabs open here at TechTimes.
Related Article: Tesla Armor Glass Patent to Have a 'Bulletproof' Protection--Cybertruck's Durability Could Surpass Everyone's Expectations!
This article is owned by TechTimes
Written by: Griffin Davis
