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.  

Elon Musk Says Other Manufacturers are Hoarding Chips, Which Leads to SoC Shortages
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Spacex founder Elon Musk celebrates after the successful launch of the SpaceX Falcon 9 rocket with the manned Crew Dragon spacecraft at the Kennedy Space Center on May 30, 2020 in Cape Canaveral, Florida. Earlier in the day NASA astronauts Bob Behnken and Doug Hurley lifted off an inaugural flight and will be the first people since the end of the Space Shuttle program in 2011 to be launched into space from the United States.

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.

Elon Musk Says Other Manufacturers are Hoarding Chips, Which Leads to SoC Shortages
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Tesla CEO Elon Musk arrives at federal court, April 4, 2019 in New York City. A federal judge will hear oral arguments this afternoon in a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) that seeks to hold Musk in contempt for violating a settlement deal.

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. 

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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. 

For more news updates about Musk and his upcoming innovations, always keep your tabs open here at TechTimes.

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Written by: Griffin Davis

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