The global chip shortage is hitting most auto manufacturers, and yet Tesla avoided the issue with a re-write of their software. Tesla CEO Elon Musk confirmed the company can now use alternative chips with ease on the Tesla earnings call. The fix was re-writing the firmware, which took a few weeks and then securing the alternative chips.
The current chip shortage led several EV companies to shut down production lines. Further to that, companies have delayed deliveries and have increased prices due to the global shortage.
Companies like Daimler, BMW and Nio all shut down production or slowed down assembly lines due to the shortage. However, Tesla’s genius firmware re-write is only a band-aid on a much deeper issue. The company noted that Tesla’s growth rate would be determined by the slowed part in their supply chain, superconductors.
Tesla relies on superconductors to power everything from modules in the vehicle to the airbags in the door. Although Tesla and other manufacturers are attempting to secure better supply chains for chips, the future and when the chip shortage will end is hard to predict for even the most prominent auto manufacturers.
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