The chip shortage in the global auto sector is currently the biggest challenge for Tesla. That’s what CEO Elon Musk said on Twitter.
According to him, companies are now buying up far more computer chips than they need for fear of running short. He compares this to the massive hoarding of toilet paper by consumers at the start of the corona pandemic.
Musk says his company is especially struggling with supplying microcontrollers used to control electronic equipment. ‘I’ve never seen anything like it. Every company is now reordering for fear of running out, just like the toilet paper shortage, but on an epic scale,” Musk said.
Tesla is in the process of raising the prices of its electric cars amid rising commodity prices and supply disruptions, and the chief executive said earlier this week.
Due to the lack of chips, many major car companies have had to shut down factories or production lines. According to researcher AlixPartners, the global auto sector will miss an estimated $110 billion in sales this year due to the chip shortage. Chip companies such as Taiwanese TSMC have announced plans to increase production to help automakers. But the shortage is expected to continue for some time.
On Wednesday, it was also announced that Tesla in the United States has to recall almost 6,000 cars because certain screws in the braking systems may be loose. There have been no known accidents due to this problem.