Tesla reported impressive production and delivery figures in Q2 2021, exceeding 200,000 units. This success was the result of superb cooperation between the manufacturer and suppliers and the virtuoso work of the Tesla team, who substituted alternative chips and wrote the firmware for them in a matter of weeks.
Despite Tesla's impressive production and delivery figures in Q2, the chip shortage situation remains quite serious. In its quarterly report, Tesla said its team has demonstrated an unprecedented ability to respond quickly and resolve manufacturing disruptions caused by semiconductor shortages. The company's electrical and firmware engineers continue to work on designing, developing, and validating 19 new variants of controllers. This was the answer to the global semiconductor shortage and led the company to success in Q2.
During the Earnings Call, Tesla CEO Elon Musk said that production growth for the remainder of this year will be driven by the ability to receive a wide range of chips from suppliers, which at various times are the slowest part of the supply chain. He explained that even if there were all the other parts necessary for the production of cars, the company could assemble them, but without chips, the vehicles would be inoperable. Thus, the supply of chips becomes a major factor in influencing Tesla's overall performance. The company cannot say how long this shortage will last, because this factor is out of their control.
Yet, Tesla's team truly put in their all, substituting alternative chips and writing the firmware for them in a matter of weeks. Musk admitted that it was an incredibly intense effort to find new chips, write new firmware, integrate them with the car, and test them to keep production going. He also thanked the company's suppliers, who, in an effort to help and solve emerging difficulties as quickly and efficiently as possible, worked even at night.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.