How Tesla plans to overcome the global chip shortage: Elon Musk's strategy

Elon Musk told investors during the Tesla's quarterly earnings call that the company has had "insane difficulties" with its supply chain over the last quarter. "We've had some of the most difficult supply-chain challenges that we've ever experienced in the life of Tesla" he said. The semiconductor chip shortage in particular impacted manufacturing goals. ♈
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Many automakers have since been forced to shut down manufacturing plants and prioritize the most profitable car models they produce as a result of the shortage. Computer chips account for about 40% of a new car's cost. Tesla decided to develop new technology so that the chip that everyone else needed was no longer necessary. 💡
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Alsl by being able to update software over the air, drivers were not impacted as heavily. This likely saved the company a lot of money in the long run. Tesla now plans to pay in advance for chips to secure its supply of the crucial materials too. The electric-car maker is also exploring buying a plant as a part of the efforts. 🔍