How Tesla Overcame Supply Chain Issues Where Other’s Couldn’t

The on-going chip shortage has been covered extensively throughout 2021 and now into 2022.

Many manufacturers from automobiles, computers, to musical instruments have all been negatively affected by the chip shortage and supply issues.

However, Tesla, led by Elon Musk, has managed to overcome many of the supply chain issues and boost deliveries by 87%.

Here’s a few reasons why Tesla overcame the current supply chain crisis:

  • They shipped vehicles by removing certain parts and leaving some parts out (bluetooth chips, ports)
  • They increased prices to cover increase in costs
  • Since Tesla’s are managed by their own software, they were able to use alternative chips and support these replacement chips via software updates
  • Tesla focuses on in-house hardware and software design more than rivals
  • Instead of reducing orders for chips during the pandemic in 2020, Tesla kept their chip orders at normal levels so were not hit as hard by the chip shortage

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