Elon Musk said the chip shortage is wreaking havoc on Tesla Inc.’s supply chain and blamed companies ordering more microcontrollers than they need, much like consumers hoarded toilet paper in the early days of the pandemic.
“Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it,” the CEO tweeted Wednesday. “Fear of running out is causing every company to overorder – like the toilet paper shortage, but at epic scale.”
Musk, 49, said during Tesla’s first-quarter earnings call in April that the chip shortage was a “huge problem” and one of the most difficult supply chain challenges the company had ever experienced. Last month, the consulting firm AlixPartners estimated automakers will lose about $110 billion of sales this year due to the dearth of semiconductors, almost double an earlier projection.
Taiwan Semiconductor Manufacturing Co. said last month it plans to increase production of microcontroller units by 60 percent this year to help relieve carmakers. Still, chip companies, auto manufacturers and their parts suppliers have warned chip supplies will remain tight into next year.