Chip and ship shortages are main threats to Tesla’s sales growth: Elon Musk

Chip and ship shortages are main threats to Tesla’s sales growth: Elon Musk

A combination of a worldwide shortage of chips and ships would be the main threat to Tesla sales growth in the coming months, the American electric car pioneer’s CEO Elon Musk said. Musk said that the ongoing worldwide shortage of chips and shipping facilities would be the only thing that could prevent his company from maintaining a sales growth of more than 50 per cent. In other words, the America billionaire entrepreneur believes that his company could continue to growth at a rate of more than 50 per cent if shortage of semiconductor chips and ships gets resolved.

It is interesting to note here that, previously in September, Mr. Musk had said that the shortage of semiconductor chips was a short term issue as several chip manufacturing plants are being built. At the time, he had predicted that the shortage of ships would be over by 2022. However, he now believes that it could last longer.

Speaking on the topic, he said, “We’ve had a fantastic year, we had record vehicle deliveries. It looks like we have a good chance of maintaining that. Basically, if we can get the chips we can do it. Hopefully this chip shortage will alleviate soon but I feel confident of being able to maintain something like at least above 50 percent for quite a while.”

Semiconductors, which can be described as microchips or integrated circuits that partially conduct electricity, play a crucial role in vehicles, especially in EVs. In the recent past, demand for semiconductor ships got a big boost as the world started accelerated its shift from internal combustion engines to electric powertrains. As the chips in question come loaded with built-in intelligence, they are used to perform various tasks in EVs to enhance driver assistance.

However, shortage of chips is not the only issue that is creating a hurdle on the way to Tesla’s further sales growth. Another issue that is threatening to mess with the EV giant’s manufacturing targets is shortage of ships. At Tesla’s recently held annual shareholder meeting, Mr. Musk admitted that his company continued to grapple with “lots” of supply chain challenges as well. He stressed that one of the biggest challenges in the past quarter was to get enough ships as there was a huge shortage of ships.

Despite all those challenges, Tesla set a new sales record by delivering 241,300 EVs worldwide in the third quarter. The figure is significantly bigger than the previous high of 201,250 EVs in the second quarter.