{"id":14034,"date":"2022-01-27T12:01:39","date_gmt":"2022-01-27T17:01:39","guid":{"rendered":"https:\/\/autosector.com\/?p=14034"},"modified":"2022-01-27T12:01:39","modified_gmt":"2022-01-27T17:01:39","slug":"musk-chip-shortage-toilet-paper","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=14034","title":{"rendered":"Elon Musk: Chip Shortage Was Much Like The Toilet Paper Fiasco"},"content":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX<\/a>, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at InsideEVs, nor have we been paid by\u00a0EVANNEX<\/a>\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!<\/em><\/span><\/p>\n

Posted on<\/span>\u00a0EVANNEX on January 27, 2022,\u00a0by<\/span>\u00a0Matt Pressman<\/p>\n

After\u00a0missing-in-action on the last earnings call, Elon Musk<\/a> was back\u00a0to give his take on Tesla’s Q4 call yesterday. As always, he added quite a bit of color (and humor) to his analysis. Tesla’s “techno-king<\/a>” had a lot to be proud of \u2014 especially in light of another crazy year for Team Earth.<\/p>\n

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Above: A look at Tesla Quality Control inside of Giga Berlin (Source:\u00a0Tesla<\/a>)<\/em><\/div>\n

The auto industry, as many are aware, was plagued by a\u00a0significant chip shortage<\/a>. According to Musk, “last year was chip hell,\u201d it was nothing short of\u00a0\u201cchip drama central.\u201d Even so, Tesla<\/a> was “able to grow almost 90% while at least almost every other manufacturer contracted last year.\u201d<\/p>\n

So will the chip shortage finally abate? Musk\u00a0seems to think so<\/a>\u00a0and made a pretty amusing analogy. He explained, “I think there’s some degree of the toilet paper problem as well, where, you know, there was a toilet paper shortage during COVID, and like, obviously, it wasn’t really, certainly, a tremendous enhanced need for ass wiping.”<\/p>\n

He continues, “It’s just people panicked… and got every paper you could possibly wipe your ass with basically\u2026\u00a0So [it was] an odd choice for people to panic about… if [the] end of the world is coming, having toilet paper is the least of your problems.\u201d<\/p>\n

So much like the toilet paper fiasco in the consumer goods sector, in the auto industry, “I think we saw just a lot of companies over-order chips\u2026 [but] we are seeing alleviation.\u201d In addition, “It’s not a long-term thing [anyhow] because there’s going to be \u2014 there’s a great amount of chip fabs being built, which is great.”<\/p>\n

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