tesla rewrites software to get round chip shortages

dive quick:
tesla is rewriting software to make the maximum of its restricted deliver of semiconductors, ceo elon musk said during a q2 income call final week.
the automaker reengineered software program for cars to apply one of a kind types of chips. in a few cases, a single chip can serve twin functions, “which is even better,” musk stated.
going forward, tesla will work to “integrate more capability into fewer chips, like the manner that it’s long past with laptops and telephones,” in line with andrew baglino, senior vice president of powertrain and energy engineering.

dive insight:
chip shortages have weighed closely on tesla’s manufacturing, with musk announcing in january that part constraints have been one of the number one reasons the automaker would not release any new cars this year. the ev maker has elevated its focus on innovation amid what musk has referred to as “chip drama crucial.”

tesla’s strategic use of semiconductors has lowered the variety of chips required to provide automobiles, allowing the automaker to maximise production. in last week’s name, musk stated the chip shortage “has served as a forcing characteristic for us to lessen the variety of chips in the automobile.”

“sure, turns out we had extra chips than we wished,” he brought.

semiconductor constraints have hammered the automobile enterprise, which calls for hundreds of chips to provide a unmarried automobile. electric powered motors want even extra chips — one hybrid electric powered vehicle, for example, desires 3,500 semiconductors on common, in line with the u.s. global change fee.

in 2021, semiconductor shortfalls value automakers an estimated $210 billion in lost sales or 7.7 million vehicles in lost manufacturing, in step with an alixpartners analysis.

tesla procures about 1,600 unique silicon components from 43 semiconductor organizations and locating new uses for chips has allowed the company to save prices and maximize manufacturing, baglino stated. lowering the quantity of semiconductors used additionally “makes the reliability of the stop product better due to the fact there may be much less failure factors.”

still, restrained supply of elements has constrained tesla’s capacity to maintain up with explosive demand. the carmaker is taking manage of its own deliver chain whilst it could, closely making an investment in battery production and lithium refining to make sure that it can meet future call for.

“if our suppliers don’t resolve those troubles, then we will,” musk stated.

 

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