Given the fact that many disagree, Tesla CEO Elon Musk stated that he believes the chip issue would be resolved in the near future.


The epidemic has resulted in an increase in consumption for many devices and computers, which the supply chain, especially in the semiconductor industry, has been unable to meet.

The automotive industry, which has become a large consumer of microchips, was affected by the microchip shortage.

We previously published a detailed study on how the chip shortage is affecting electric vehicle production, as several automakers were forced to stop production until chip supplies improved. 

Pat Gelsinger, the CEO of Intel, one of the world's largest semiconductor businesses, has stated that the industry may take a "few of years" to catch up to the market growth.

Tesla CEO Elon Musk stated that it is affecting Tesla earlier this year, but he believes it is not a "long-term issue."

Musk said that the supply chain issue, specifically "micro controller chips," is Tesla's current biggest challenge while discussing the company's performance this quarter.

The supply chain, particularly micro controller chips, is our largest difficulty. It's unlike anything I've ever seen. Fear of running out is causing every business to over order — similar to the toilet paper shortage, but on a much larger scale. However, it is clear that this is not a long-term problem.

Musk addressed the issue again today at a tech conference in Italy, saying that it should be fixed “by next year” with new factories on the way:

“Many chip fabrication plants are being developed, and I believe we will have sufficient capacity by next year.”

The CEO's outlook is more hopeful than that of some other industry experts, who believe the problem will continue till 2023.

Tesla also said that it was able to contain the problem during the first quarter by switching to new micro controllers, as we previously reported:

“We were able to navigate around worldwide chip supply shortages in Q1 in part by pivoting really quickly to new micro controllers while simultaneously building firmware for new chips produced by new suppliers,” says the company.

According to some reports, Tesla explored purchasing its own chip manufacturing to remedy the problem.