Musk says his company is particularly struggling in providing so-called microcontrollers used to control electronic equipment. “I’ve never seen anything like it before. Every company is rearranging now for fear of running out, just like toilet paper shortages, but on an epic scale,” Musk said. Musk said earlier this week that Tesla is in the process of raising prices for its electric cars amid soaring commodity prices and supply disruptions.
Due to the lack of chips, many major auto companies have had to close factories or production lines. This is because manufacturers of game consoles and laptops need additional chips due to the large number of working from home during the pandemic. So there is a very big demand.
According to researcher AlixPartners, the global auto sector will lose an estimated $110 billion in sales this year due to chip shortages. Chip companies such as Taiwan’s TSMC have announced plans to ramp up production to help automakers. But the shortage is expected to continue for some time.
On Wednesday, it was also announced that Tesla in the US must recall nearly 6,000 vehicles because some of the screws in the braking systems may be loose. As far as is known, there are no known incidents due to the problem.