Elon Musk tweeted that the current chip shortage that his Tesla is facing is just like the panic-buying of toilet paper. He claimed that many tech giant firms and other manufacturers are now hoarding microcontroller chips since they fear running out.
He made the statement after one of his fans said that the issues faced by Tesla are insane. These include the delayed shipment date of its new Tesla Model S Plaid, as well as the increasing prices of Tesla Model 3 and other models.
"Our biggest challenge is a supply chain, especially microcontroller chips. Never seen anything like it," said that tech CEO.
"Fear of running out is causing every company to overorder - like the toilet paper shortage, but at an epic scale. That said, it's obv, not a long-term issue," added Elon Musk.
His latest tweet generated more than 6,000 likes, 370 comments, and 110 quiet tweets.
Elon Musk's Chip Shortage
According to Bloomberg's latest report, Elon Musk first announced Tesla's chip shortage back in April. He added that this is a huge problem for the giant EV developer.
He even claimed that it is one of the most complex issues to be resolved by the giant tech company. On the other hand, AlixPartners, a consulting firm, claimed various automakers, including Tesla, could lose around $110 billion in sales this 2021 because of the semiconductor issue.
Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it.— Elon Musk (@elonmusk) June 2, 2021
Fear of running out is causing every company to overorder – like the toilet paper shortage, but at epic scale.
That said, it’s obv not a long-term issue.
This sale decrease is almost twice as high as the one that was previously projected in 2020. Because of the chip shortage and other production issues, Tesla has no choice but to delay its EVs' shipment dates and to increase their prices.
Although this is the case, Elon Musk is still making some efforts to resolve the current SoC shortage.
Elon Musk's Plans to Resolve Chip Shortage
Previously, Business Insider reported that SpaceX owner is planning to make advanced payments for chip shortages. Aside from this, the giant tech firm also said that Tesla might purchase its own semiconductor plant.
Right now, various chip manufacturers are still suffering from a lack of materials to make these SoCs. It all started when the global pandemic hit many countries across the globe. So as of the moment, the best thing you can do as a consumer is waiting for Tesla's announcements and upcoming resolutions before making any conclusion.
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Written by: Griffin Davis