Elon Musk again reiterated that the company is currently facing extreme supply chain limitations due to computer chips shortages brought on by COVID - 19 pandemic.
Musk was publicly announced regarding certain standard and light automotive components, and we are operating under high supply chains, Musk tweeted Thursday. Most difficult of all are Renesas Bosch.
It's an issue plaguing Tesla industry and Musk has already made in the past clear that Tesla is no exception.
The growth rate will be determined for the rest of this year by the slowest part of our supply chain, Musk said on an earnings call with analysts in July. Chip supply is fundamentally the governing factor in the output of our company.
The shortage of semiconductor chips — which power a wide variety of products that connect, entertain and connect consumers — started last summer when the pandemic forced chip factories to shut down, particularly overseas where the majority of the processors are made.
By the time they went reopen, they had a backlog of orders to fill. Chipmakers were then compounded by unforeseen demand, further swamping the issue. To address this chip shortage, Tesla rewrote its driving software to support alternative chips.
In its second quarter earnings call, the company disclosed that it was still able to produce and supply over 200,000 electric vehicles and achieve an 11% operating margin.
Automobile manufacturers hit the hardest by the shortage, which forced them to temporarily terminate shifts and cancel factories, include Ford, General Motors, Stellantis VW and Honda.
Others, most notably Toyota, aren't affected as dramatically.