Although many disagree, Tesla CEO Elon Musk stated that he believes the chip issue will be resolved soon.

The epidemic has resulted in a surge in demand for numerous devices and computers, which the supply chain, particularly in the semiconductor industry, has been unable to meet.

The automotive industry, which has become a large consumer of microchips, was impacted by the microchip shortage.

Electrek published a detailed study on how the chip shortage harms electric vehicle production, citing that numerous automakers had to suspend production until chip supplies improved.

Pat Gelsinger, the CEO of Intel, has stated in another Electrek report that the industry may take a "few of years" to catch up to the rising demand.

In an April blog post, Forrester's vice president and research director Glenn O'Donnell said the company expects this shortfall to endure through 2022 and into 2023 because demand will remain strong and supply will remain tight.

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Elon Musk: Chip Scarcity Will Be Resolved Soon!

Tesla CEO Elon Musk revealed earlier this year that the chip scarcity is harming Tesla. However, he does not believe it is a "long-term problem."

Musk stated that the supply chain issue, specifically "microcontroller chips," is Tesla's current major hurdle while assessing the company's performance this quarter.

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"There's a lot of chip fabrication plants that are being built and I think we will have good capacity for providing chips by next year I think," Musk said during the Italian TechWeek. "I certainly hope so, but it appears that way."

Musk didn't say which plants he was discussing about. But Fox News said chipmakers Taiwan Semiconductor Manufacturing Co. and Intel have stated that they will increase their plant investments in the United States. However, their new facilities will not be operational for several years.

Tesla has so far been able to overcome the chip scarcity by switching to new designs and rewriting the necessary software, News24 said. In the second quarter, the manufacturer set a new record for vehicle deliveries and set a new high for net profit, surpassing $1 billion for the first time.

Elon Musk: Tesla Affected Due to Chip Scarcity

He stated that they were facing some of the most challenging supply chain challenges that Tesla has ever faced and the same difficulties with supply chain and parts. "This is a huge problem," he said in a CNBC report.

In 2019, Tesla started making cars with specific AI processors, which help on-board software make decisions in response to what's happening on the road.

Because of the chip shortfall, Musk claimed in July that the production of Tesla's Powerwall product, a home backup battery, was "lagging."

The relaxation of coronavirus restrictions in other countries has boosted demand for car parts, resulting in a surge in electric vehicle sales and renewed activity.

However, other businesses that rely significantly on semiconductors, such as computing, telephones, and smart gadgets, compete with the auto industry.

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