One of the world’s richest person, Elon Musk said if the electric car (Tesla) manufacturers are forced to think about the many supply chain issues in 2021’s.
Quoting Insider, Wednesday (19/5/2021), Elon Musk said his company had experienced “major difficulties” with its supply chain during the last quarter.
“We have experienced some of the most difficult supply chain challenges we have experienced running Tesla,” he said.
Semiconductor Chip Shortages
CEO said a global shortage of semiconductor chips, which has rocked the auto industry, as well as port delays had impacted major manufacturing destinations.
In February, Tesla temporarily halted production of the Model 3 at its California auto assembly plant.
The reason is supply chain problems caused by buildup in ports and severe snowstorms that slow down land shipments.
A global shortage of semiconductors has wreaked havoc on technology and automotive companies.
In January, Bloomberg reported that a shortage of chips could cause auto companies to lose up to $ 61 billion in revenue.
Many automakers have been forced to close factories and prioritize the most profitable car models they produce as a result of the shortage.
Computer chips account for about 40 percent of the cost of new cars, according to a report from Deloitte, and are used in navigation, bluetooth, and collision detection systems.
Musk also said the company was having problems increasing its production in China because of the pandemic. Restrictions due to COVID-19 in the country have made it difficult for Tesla to bring in engineers to its factories.
Port delays and a global shortage of container ships also have an impact on Tesla’s manufacturing supplies in the US.
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