Tesla is weathering the global chip shortage by rewriting its automobile software program to assist different chips, CEO Elon Musk mentioned throughout an earnings call Monday. The scarcity has upended the auto trade at a time of historic demand for brand spanking new vehicles, resulting in manufacturing facility shutdowns, longer wait instances, and better costs.
“We have been in a position to substitute different chips, after which write the firmware in a matter of weeks,” Musk mentioned. “It’s not only a matter of swapping out a chip; you additionally must rewrite the software program.”
This strategy has helped Tesla keep excessive ranges of manufacturing, delivering over 200,000 vehicles to prospects over the course of the final three months, the corporate mentioned. Tesla generated $11.9 billion in income within the quarter, together with $1.1 billion in revenue.
Tesla isn’t alone in feeling the results of the worldwide scarcity. With demand for vehicles at an all-time excessive, automakers all over the world are feeling the constraints of manufacturing with chips in brief provide. This week, Daimler and BMW mentioned the shortage of chips has pressured it to shutdown a few of their meeting traces, which is able to lower the businesses’ output by tens of 1000’s of automobiles.
Musk mentioned that Tesla’s future development will rely on a swift decision to the worldwide semiconductor scarcity. “The worldwide chip scarcity state of affairs stays fairly severe,” he mentioned. “For the remainder of this yr, our development price will likely be decided by the slowest half in our provide chain,” which incorporates the wide selection of chips utilized in Tesla’s automobiles.
Tesla depends on chips to energy all the pieces from its airbags to the modules that management the automobiles’ seatbelts — which now means Tesla is lacking parts which can be important for the automobile’s security options. “A giant wrestle this quarter was the module that controls the airbags and seatbelts,” Musk mentioned. “And clearly you can’t ship a automotive with out these.”
Musk sounded an unsure word concerning the future. “It does appear to be it’s getting higher,” he mentioned, “but it surely’s laborious to foretell.”