How Tesla Reworked its Software program to Survive the Semiconductor Chip Scarcity

Tesla has remained forward of the continuing semiconductor chip scarcity, however it hasn’t been simple. Past securing added suppliers and a number of chip choices, Tesla needed to depend on its software program focus to make options work — which is finally why the automaker has weathered the scarcity higher than others.

On Tesla’s Q2 earnings name, Musk described how the automaker needed to rework its software program to be appropriate with various chip provide choices. The whole automotive business is dealing with chip shortages, however this resolution has stored Tesla afloat — whereas different automakers sink. And it solely took Tesla a couple of weeks to rewrite the firmware, in line with Musk.

“We have been capable of substitute various chips, after which write the firmware in a matter of weeks,” Musk stated within the name. “It’s not only a matter of swapping out a chip; you additionally should rewrite the software program.”

Tesla delivered greater than 200,000 autos within the second quarter, producing $11.9 billion in income and $1.1 billion in revenue. In the meantime, automakers resembling BMW and Daimler have been compelled to halt manufacturing of some meeting traces because of a scarcity of semiconductor chips. The transfer is predicted to lower output by tens of 1000’s of autos.

Even Musk says the business isn’t out of the woods but. He described how Tesla’s nonetheless coping with the results of the scarcity, saying that the yr’s progress trajectory can be reliant on the semiconductor state of affairs.

“The international chip scarcity state of affairs stays fairly critical,” Musk stated. “For the remainder of this yr, our progress fee can be decided by the slowest half in our provide chain.”

Mercedes-Benz CEO predicts chip shortages will proceed into subsequent yr. Video: CNBC / YouTube

Moreover, it’s greater than only a single semiconductor chip that Tesla’s electrical autos use. Every makes use of a wide selection of chips for every little thing from seatbelts to airbags. Which means that a scarcity in any division can have an effect on Tesla’s general deliveries, as Musk plainly defined within the name.

“An enormous battle this quarter was the module that controls the airbags and seatbelts,” Musk stated. “And clearly you can’t ship a automotive with out these.”

As as to if the tip is in sight for the semiconductor chip scarcity, Musk appears optimistic. Nevertheless, he additionally admitted uncertainty, emphasizing that it isn’t clear what may occur. And with the scarcity getting into its third yr, it has been something however predictable.

“It does look like it’s getting higher,” Musk stated. “However it’s arduous to foretell.”

Initially posted on EVANNEX. By Peter McGuthrie.

Featured picture courtesy of Tesla


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