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Elon Musk says chip shortage only ‘short term’

By AFP
24 September 2021   |   2:09 pm
Tesla boss Elon Musk on Friday said that a global semiconductor shortage hitting car firms especially hard would be overcome soon.

(FILES) In this file photo Elon Musk, CEO of Tesla and SpaceX, poses on the red carpet as he arrives for the 43rd “Goldenes Lenkrad” (Golden Steering Wheel) awards on November 12, 2019 in Berlin. – Tesla founder Elon Musk on July 2, 2020 mocked securities regulators and short-sellers in series of tweets as the tech entrepreneur celebrated his firm’s rise as the world’s most valuable carmaker. The taunts came as shares in the electric carmaker revved on the news it produced more than 82,000 vehicles and delivered approximately 90,650 in the recently ended quarter despite production being disrupted due to the coronavirus epidemic. (Photo by Tobias SCHWARZ / AFP)

Tesla boss Elon Musk on Friday said that a global semiconductor shortage hitting car firms especially hard would be overcome soon.

The chip drought is “short term, I think,” the billionaire said in an appearance by video at Italian Tech Week in Turin.

“There are a lot of chip fabrication plants that are being built,” Musk told the audience of startups, investment funds and tech entrepreneurs.

“I think we will have good capacity for providing chips by next year. I certainly hope so, but it appears that way.”

A boom in electric vehicle sales and renewed activity following the lifting of coronavirus restrictions in many advanced economies has boosted demand for car parts.

But the auto industry is butting up against other sectors that require large amounts of semiconductors as inputs, including computing, smartphones and smart devices.

Tesla has so far overcome the chip shortage by switching to different designs and rewriting the relevant software.

In the second quarter, the carmaker delivered a record number of vehicles and topped $1 billion of net profit for the first time.

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