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Semiconductor shortages halt BMW and Daimler production lines

Credit: BMW

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The global semiconductor shortage is halting production lines of both BMW and Daimler’s facilities in Germany. The shortages, which have widely affected nearly every automaker in the world, are continuing to make a dent in the production of both internal combustion engines and electric vehicles, making the continuing issue a widespread worry across the automotive sector.

BMW announced that the semiconductor shortage affected production by around 10,000 units this week, and the problems are expected to continue into next week. A spokeswoman for the German automaker announced that it had temporarily stopped production or cut back shifts at three plants in its home country, along with additional facilities in Britain, the Netherlands, and Austria.

Earlier this month, BMW also announced that the shortages had affected the production of around 30,000 vehicles so far in 2021. The company delivered 2.324 million cars last year.

However, BMW is not the only automaker in Germany experiencing some heat due to the semiconductor shortage. Daimler is also having trouble with the shortage, and it’s affecting the company’s production lines at several locations in Europe. Daimler seems to be more transparent about the semiconductor issues and stated it expects the supply chain shortages to last into 2022, according to CFO Harald Wilhelm. “We would certainly have built more cars if we had more chips,” he said.

Daimler CEO Ola Källenius said that the shortage “is a fixable problem,” he said on a conference call with analysts and investors on Wednesday, according to Reuters. Källenius said that increased visibility into how the issue would be solved is among the top priorities for his company. Knowing how the chip suppliers plan to increase production would alleviate many of the company’s concerns, he said.

The shortage temporarily halted assembly lines at the company’s plant in Sindelfingen. This plant is responsible for producing the all-electric Mercedes-Benz EQS, and the assembly lines for this vehicle were affected by a chip supplier shutdown in Malaysia, the New York Times reported.

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Daimler’s financial status did not take a hit from the decrease in production or the chip shortage. The automaker reported a net profit of €3.704 million ($4.37 million) during its Q2 2021 Earnings results, a far cry from the €1.906 million ($2.25 million) it lost during Q2 2020.

Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Cybertruck

Tesla upfitter offers to keep Cybertruck alive

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Credit: Unplugged Performance

A Tesla upfitter has offered to take over Cybertruck lines from the company in a last-ditch effort to save the all-electric pickup from being completely canceled in the middle of 2027.

Unplugged Performance, the Hawthorne, California-based Tesla aftermarket specialist, has publicly offered to take over Cybertruck production from Tesla, funding the effort “through a consortium of investors.”

The proposal comes as Tesla prioritizes its Cybercab Robotaxi program and prepares to wind down Cybertruck assembly at Gigafactory Texas around mid-2027.

Founded in 2013 by Ben Schaffer and located adjacent to Tesla’s Design Studio and SpaceX, Unplugged Performance has become a leading provider of premium upgrades for Tesla vehicles, including extensive Cybertruck packages under its UP INVINCIBLE line.

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Through its UP.FIT division, the company has also developed purpose-built police and fleet versions of the Cybertruck, including deliveries to agencies such as the Las Vegas Metropolitan Police Department.

In an X post on Tuesday, Unplugged said:

“An open offer to Tesla: We fully support putting Cybercab first, and we’d be glad to take the Cybertruck line off your hands. We’d fund it with a consortium of investors and run it at no cost to Tesla’s floor space, headcount, or focus. All of that goes to Cybercab. Cybercab gets first call on battery cells too. We’ll wait our turn. Tesla gains incremental profit: a license fee, plus FSD and Robotaxi network revenues on every vehicle built. We’d build the Cybertruck, a three-row CyberSUV, and an unmanned CyberCargo hauler. More autonomous miles, across every surface of this planet and beyond. Worth a conversation?”

The arrangement would free Tesla resources and manufacturing capacity for Cybercab while allowing continued production of the stainless-steel pickup and expanded variants. Unplugged Performance indicated it would wait for battery cells after Cybercab needs are met and would generate ongoing revenue for Tesla through licensing and software/network services on the vehicles it produces.

Following strong initial interest, Unplugged Performance posted a follow-up inviting potential investors and strategic partners to email cyber@unpluggedperformance.com. The company clarified that the outreach is solely to gauge interest and does not constitute an offer to sell securities or acceptance of funds at this stage.

The proposal arrives shortly after Elon Musk indicated that Cybertruck production in Texas would be phased out by roughly the middle of 2027 to expand Cybercab output.

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Whether Tesla engages with the offer remains to be seen, but the public overture highlights both the aftermarket specialist’s deep experience with the Cybertruck platform and the growing focus on autonomy within Tesla’s manufacturing plans.

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Elon Musk

Elon Musk says Tesla Cybercab future is ‘obvious to anyone with eyes and a brain’

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Elon Musk said the Tesla Cybercab will perform “a majority of all passenger miles” where it is allowed to operate and that point is “obvious to anyone with eyes and a brain.”

Musk used the point to double down on the company’s decision to ax the cult-favorite Cybertruck, as its production space will be removed and transitioned into additional Cybercab lines. The move has catalyzed a polarizing conversation on whether its right or wrong.

Whatever side you are on — it’s happening.

Regardless, Musk seems to be getting to the point that he is done talking about the choice. At some point, you have to think that this was truly a difficult decision for him and the company as well, and this is not something he took lightly. In fact, he’s probably a little bit disappointed with it, too.

But the point remains that the Cybertruck is gone. Musk’s focus is purely on developing an autonomous platform that the world will utilize for transportation, and he’s telling you that anyone “with eyes and a brain” can see it:

Tesla is betting that all of its passengers in the future will be okay with not owning their own personal cars and will be fine with ride-hailing for the rest of their lives. Every dinner, every errand, every trip to the airport and transportation thereafter, will all be operated by ride-sharing, and in Tesla’s perfect world, it will happen in a Cybercab.

As of now, Cybercab is only active in Austin, but it has been spotted all over the country with a driver behind the wheel in those prototypes. In Austin, the car has no steering wheel or pedals for people to control the vehicle.

The Cybertruck dilemma is one that has truly come across the entire Tesla community and while it seems to be a great idea to keep it because people love it, the business side of things is steering Musk and Tesla in another direction.

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Tesla slims Cybertruck offerings to only its most expensive trim

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Credit: u/dregonzz/Reddit

Tesla has slimmed its Cybertruck offerings to offer only its most expensive trim: the Cyberbeast.

After announcing that the Cybertruck would no longer be produced and the company would wind down manufacturing sometime in the middle of 2027, Tesla started to eliminate some of the configurations offered to customers.

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Now, only one remains: the $109,990 Cyberbeast. This is truly what seems like Tesla’s last effort to deter any remaining orders from coming in: eliminate the cheap trims and leave only the high-dollar vehicle within the lineup of Cybertruck options.

Those who want to take advantage of this last-ditch opportunity to own Tesla’s symbolic pickup have to pay to play.

Tesla says the reason for the wind down is truly because of Cybercab and its importance to the future.

Despite cries for Tesla to continue production of the pickup, Musk says it is too difficult to ramp a high-volume line instead of ending the truck altogether. He also says Cybercab is what will take passengers around for the “majority of all miles in any jurisdiction where it is not prohibited by law.”

Tesla is going all in on autonomy, and that’s never been a secret. But the commitment to a two-door, two-seat Cybercab truly limits people from having options for labor or hobbies. It also limits people from having their entire family in a single car.

Parents with even a single child will be required to take multiple vehicles if Cybercab is truly the only option Tesla plans to have.

Elon Musk keeps justifying Tesla Cybertruck’s cancelation, but it’s confusing

Tesla has stated the Robovan will also be in production eventually, but it still does not seem like the most ideal vehicle to own. It seems like it is geared more toward commercial uses, but Tesla might have something in the pipeline for families.

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