Tesla cut steering component from some cars to deal with chip shortage – CNBC

This post was originally published on this site

https://i-invdn-com.investing.com/trkd-images/LYNXMPEI17028_L.jpg

The electric-car maker did not disclose the exclusion, which already affected tens of thousands of vehicles being shipped to customers in China, Australia, the United Kingdom, Germany and other parts of Europe, the report said, citing two employees and an internal correspondence.

Tesla decided against notifying customers as the part is considered a redundant backup and was not needed for the level 2 driver-assistance features, the report said, adding it was not clear if Tesla would make similar changes to the cars built in or shipped to the United States.

Tesla has fared better than most automakers in managing supply chain issues by using less scarce chips and quickly re-writing software.

It expects chip shortages to last through this year before easing next year. Chief Executive Elon Musk told an earnings call last month the shortage was not a long-term issue, with factories increasing capacity and automakers guilty of panic buying of chips which slowed the supply chain.