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Tesla has remained forward of the continuing semiconductor chip scarcity, nevertheless it hasn’t been straightforward. Past securing added suppliers and a number of chip choices, Tesla needed to depend on its software program focus to make alternate options work — which is in the end why the automaker has weathered the scarcity higher than others.
On Tesla’s Q2 earnings call, Musk described how the automaker needed to rework its software program to be suitable with different chip provide choices. All the automotive business is going through chip shortages, however this resolution has stored Tesla afloat — whereas different automakers sink. And it solely took Tesla a number of weeks to rewrite the firmware, in response to Musk.
“We have been capable of substitute different chips, after which write the firmware in a matter of weeks,” Musk mentioned within the name. “It’s not only a matter of swapping out a chip; you additionally must rewrite the software program.”
Tesla delivered greater than 200,000 autos within the second quarter, producing $11.9 billion in income and $1.1 billion in revenue. In the meantime, automakers resembling BMW and Daimler have been compelled to halt manufacturing of some meeting traces on account of an absence of semiconductor chips. The transfer is predicted to lower output by tens of 1000’s of autos.
Even Musk says the business isn’t out of the woods but. He described how Tesla’s nonetheless coping with the results of the scarcity, saying that the yr’s development trajectory will likely be reliant on the semiconductor state of affairs.
“The global chip shortage state of affairs stays fairly severe,” Musk mentioned. “For the remainder of this yr, our development charge will likely be decided by the slowest half in our provide chain.”
Mercedes-Benz CEO predicts chip shortages will proceed into subsequent yr. Video: CNBC / YouTube
Moreover, it’s greater than only a single semiconductor chip that Tesla’s electrical autos use. Every makes use of a big selection of chips for every thing from seatbelts to airbags. Which means a scarcity in any division can have an effect on Tesla’s overall deliveries, as Musk plainly defined within the name.
“An enormous battle this quarter was the module that controls the airbags and seatbelts,” Musk mentioned. “And clearly you can not ship a automobile with out these.”
As as to if the top is in sight for the semiconductor chip scarcity, Musk appears optimistic. Nonetheless, he additionally admitted uncertainty, emphasizing that it isn’t clear what would possibly occur. And with the scarcity getting into its third yr, it has been something however predictable.
“It does look like it’s getting higher,” Musk mentioned. “However it’s onerous to foretell.”
Initially posted on EVANNEX. By Peter McGuthrie.
Featured picture courtesy of Tesla
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