Elon Musk believes that the shortage of chips for the production of cars will end in 2022

The chip shortage has hit the automotive industry hard, forcing several companies to close factories around the world. Although Tesla was not affected, Elon Musk believes that this problem will be solved next year.

This had a significant impact on automotive production in the United States and abroad. However, the CEO of Tesla Motors,  Elon Musk thinks the industry may not have to suffer for long. According to a Reuters report, Musk recently offered his opinion on the chip shortage and why he thinks it will end sooner than expected.

What is Musk's position?

Elon Musk believes that as new semiconductor factories are planned or under construction, there may be light at the end of the tunnel.

At the event, Tesla's CEO was asked bluntly how long he thought the global chip shortage would affect car production. Musk replied: "I think in the short term." “There are a lot of chip factories being built,” Musk continued. “I think we will be in a good position to supply chips next year,” he added.

Elon Musk made the comments during a panel with Stellantis and Ferrari Chairman John Elkann at Italian Tech Week.

Chip shortage hits some automakers harder than others

The global pandemic has had a ripple effect on various industries, and even a year later, the full impact is not fully known. The only thing you can be sure of is that COVID-related closures have significantly hampered the supply chains of various finished goods.including cars.

When major semiconductor factories closed for extended periods, it meant that essential automotive parts such as electronic control units and other computer-controlled components could not be produced. With automakers unable to get their hands on vital parts, some have been forced to delay or stop production altogether.

How car brands reacted to the crisis

Subaru had to close a plant in Japan, as well as the BMW plant in Germany, which produces cars for its MINI brand.

Ford and General Motors also closed factories due to chip shortages. The situation with American automakers has become so dire that President Biden recently met with representatives of the "big three" (Ford, Stellantis and General Motors). At the meeting, the administration Biden demanded that American car brands voluntarily provide information on production so that the government could get a better understanding of how the shortage of chips is affecting their production.

Since plant closures mean a shutdown of jobs, the shortage of wood chips in the automotive industry could have a significant negative impact on the US economy if nothing is done to address it.

Not all automakers hit hard by chip shortages

Hyundai records record sales, while other OEMs were shutting down. Some experts suspect that Hyundai escaped the chip shortage unscathed because it predicted a shortage was coming and stockpiled additional chips.

Tesla is another manufacturer that has managed to avoid major chip shortage problems.. Tesla attributed its success to hardware shortages by switching vendors and redesigning its vehicles' firmware to work with different types of microcontrollers that rely less on hard-to-find semiconductors.

Si Elon Mask You're right, these issues won't be a problem for automakers in a year, but Musk is just one man, and judging by recent history, this chip shortage could hold up a few surprises.

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