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Elon Musk: Current chip shortage huge problem

American electric vehicle and clean energy company Tesla Inc. Chief Executive Officer (CEO) Elon Musk described on Monday the current global shortage of semiconductors as a "huge problem."

NEWS IN ENGLISH 27.04.2021, 08:29
Elon Musk: Current chip shortage huge problem
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Musk said that, despite that, Tesla will still probably start delivering its new Model S next month. He added the company will begin the "high-volume production" of the model in the third quarter of the year and the "mass production" of it in 2022.

Musk's comments come after Tesla revealed its revenue in the first trimester of 2021 rose by 74 percent in comparison to the same period in 2020 in anticipation of the Model S.

Chief executive officer of Cisco Systems Chuck Robbins predicted in an interview on Saturday that the global shortage of semiconductors may last six months in the short term, while the providers build more capacity.

"What happened is when Covid hit, everyone thought that the demand was going to decline significantly. [...] All of the manufacturers, like us and car manufacturers, said 'lower demand signals to the providers of semiconductors', they then reduced their capacity and at the same time the demand went up instead," Robbins told BBC.

Robbins also expressed his concerns that the situation has now been exacerbated, because customers for the semiconductors were afraid of placing multiple orders, due to the extremely high demand.
 

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