Tesla cut steering component from some cars to deal with chip shortage
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© Reuters. FILE PHOTO – The Tesla logo can be seen in the entryway to Tesla Motors’ new showroom at Manhattan’s Meatpacking District, New York City. December 14, 2017. REUTERS/Brendan McDermidCNBC reported Monday that Tesla (NASDAQ) Inc had decided to eliminate one of its two electronic control unit in the steering racks for some Model 3 or Model Y made in China to help meet sales goals and deal with a global chip shortage.
According to the report, two employees of the electric car maker and internal correspondence, they did not reveal the exclusion. This already affects tens, of thousands of vehicles shipped to Europe from China, Australia and Germany.
Tesla chose not to notify customers because the part was considered redundant and not required for level 2 driver assistance features. The report also stated that it wasn’t clear whether Tesla would make similar modifications to cars made in the United States.
Tesla is doing better than other automakers when it comes to managing supply chain problems. They use less expensive chips and rewrite their software quickly.
According to the company, chip shortages are expected to continue this year and then ease next year. Elon Musk, the Chief Executive Officer of Tesla Motors stated last month that there was no shortage. There were factories growing in capacity while automakers bought panic chips. This slowed down the supply chain.
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