News
Elon Musk: Chip shortage is a “short term” problem that will likely be over next year
During an Italian tech event that was streamed on Friday, Tesla CEO Elon Musk predicted that the ongoing semiconductor crisis would likely be over next year. Musk also noted that he believes the global chip shortage issue is a “short term” problem and not one that would be true for the long term.
The Tesla CEO noted that “there’s a lot of chip fabrication plants that are being built, and I think we will have good capacity by next year,” though he did not specify what facilities he was referencing. Noted chipmakers such as Intel and TSMC have unveiled plans to expand their presence in the United States to boost their supply, but the planned factories are not expected to come online anytime soon.
Glenn O’Donnell, a vice president research director at Forrester, an advisory firm, noted that he believes that the chip shortage could last well into 2022 and perhaps even up to 2023. “Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023,” O’Donnell noted.
Musk’s statements are difficult to discount, considering that Tesla is arguably the carmaker that is handling the ongoing chip supply issues best. During the Q2 2021 earnings call, Musk revealed that Tesla was able to respond to the global semiconductor shortage by rewriting its vehicles’ software and using alternative chips.
“We were able to substitute alternative chips and then write the firmware in a matter of weeks. It’s not just a matter of swapping out a chip. You also have to rewrite the software. So it was an incredibly intense effort of planning new chips, writing new firmware, integrating it to the vehicle and testing it in order to maintain production,” Musk wrote.
Efforts are also seemingly underway to ensure that Tesla’s chip supply is as robust as possible in the near future. Just recently, a report from South Korea noted that Tesla key supplier Samsung Electronics has reportedly selected Taylor, TX, as the site of its upcoming $17 billion chip plant that would likely enter operations by Q4 2024. Samsung’s Taylor plant happens to be just 40 minutes away from Gigafactory Texas, the site where the Tesla Cybertruck would be produced.
The global chip shortage has not been kind to the auto industry, with companies such as Volkswagen, Ford, and Daimler suspending production at several points and cutting their manufacturing targets due to the lack of semiconductors. Automakers use semiconductors for numerous functions, from basic features such as power steering to more advanced systems such as adaptive cruise control.
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Tesla is offering those who are owners of the legacy Model Y an interesting promotion in an effort to get them into the newest version of the all-electric crossover.
The Model Y underwent an overhaul by Tesla over the past year, and earlier this year, the company finally started launching it in markets across the globe.
It was first launched in China, Europe, and North America.
Tesla’s focus on switching over production lines had cost it several weeks of production and deliveries in the first quarter, and now the company is playing catch-up to keep pace with its yearly delivery goal. It is offering several promotional discounts on vehicles within its lineup, but now Tesla is pulling out an additional stop with the new Model Y.
As a way to push legacy Model Y owners into the new vehicle, Tesla is offering a $2,000 discount to those drivers if they take delivery of the new build:
❗️Tesla Is Now Texting Owners Offering the $2,000
Model Y Loyalty Incentive…Yup—if you’re a current or previous Model Y owner,
Tesla might be sending you a $2,000 loyalty offer toward a new Model Y (Juniper).
But here’s the thing…
• I bought a 2021 Model Y Performance… pic.twitter.com/lv0CzY6Afc
— DennisCW | wen ms refresh (@DennisCW_) May 1, 2025
The new Model Y offers substantial benefits over the older version, and the changes are not just different in terms of aesthetics:
The new Model Y vs. legacy Model Y
Which do you like more? pic.twitter.com/IvApdtFVN8
— TESLARATI (@Teslarati) May 3, 2025
The new Model Y features acoustic-lined glass for a more peaceful cabin, refined suspension for a better ride, a sleeker design for better aerodynamics, and even smaller changes like quieter-closing doors.
With some concerns about demand, it still seems Tesla has plenty of buyers, but it would truly like to get more people in the new Model Y. Tesla came in under consensus estimates for deliveries this past quarter, but did spend several weeks switching over production lines at all of its factories.
Still, the automaker is moving toward a big year with the rollout of the Robotaxi ride-hailing service and affordable models coming soon.
News
Tesla exec shares unique Supercharger team rule that accelerates EV adoption
It is a rule that allows Tesla to become an industry leader in EV charging services.
Tesla Director of Charging for North America, Europe, Middle East, Africa, and Asia Pacific Max de Zegher recently shared some insights on a rather interesting rule that is being followed by the Supercharger team. It is a rule that, in a lot of ways, allows Tesla to further accelerate EV adoption.
No Exclusivity
In a recent post on its official social media account on X, the Tesla Charging team noted that it does not have exclusivity clauses for EV charging with property owners. As per the team, they discourage property owners to opt for exclusivity clauses since EV charging should not be restricted. “Hosting more charging infrastructure improves range confidence, keeps charging prices low, and accelerates EV adoption,” the Tesla Charging team wrote in its post.
While the Supercharger Network could have been a strong moat for Tesla in the electric vehicle sector, the charging network has been opened to other automakers’ EVs over the past years. In North America, Tesla’s home-grown NACS has become a standard, being adopted by veterans like Ford and General Motors and newer companies like Lucid Motors and Rivian.
Charging Director’s Comments
In a follow-up comment, de Zegher stated that the Tesla Charging team makes it a point to explain to landlords why EV charging should not have exclusivity clauses. As per the executive, there is no shortage of areas that could host EV charging spaces, so it only makes sense to support their expansion.
“When landlords offer us exclusivity, we actively reject it and explain our reasoning. We encourage them to install as much charging infrastructure as possible. We stand by our goal of ensuring as much dependable and affordable charging infrastructure as possible, whether from Tesla or other providers. There is no shortage of parking spaces, especially with increasing autonomy on the horizon. Legal moats only slow down EV infrastructure growth,” de Zegher wrote in a post on X.
Tesla Supercharger Stats
As per Tesla in its Q1 2025 Update Letter, the company operates 7,131 Supercharger stations with 67,316 Supercharger stalls worldwide as of the end of the first quarter. This effectively makes the Supercharger Network into one of the most reliable and cost-effective charging solutions in the market.
Lifestyle
Tesla Model 3 driver is using FSD to travel to Mt. Everest Base Camp
The ambitious, nearly 4,000-kilometer (2,485-mile) Tesla FSD journey is being livestreamed on Chinese social media.
Count on Tesla drivers in China to push Full Self Driving (FSD) as far as it could go. As could be seen in videos posted on Chinese social media, a brave Model 3 owner is currently going on an epic journey from Henan Province to the base camp of Mt. Everest on FSD.
Recent posts from the Model 3 driver suggest that the ambitious destination may be within reach.
Epic FSD Journey
As noted by Tesla owner-enthusiast Aaron Li, the journey from Henan Province to the base camp of Mt. Everest spans almost 4,000 kilometers (2,485 miles). The journey itself is epic, with stunning vistas and roads that require some drivers to bring oxygen canisters with them. The fact that it is being done using FSD makes it extra impressive.
Based on the videos that have been recently shared, the Model 3 running FSD seems to be nearing the Everest Base Camp. There seems to be a good chance that the Tesla Model 3 may reach its destination this Friday.
Previous Everest Trips
This is not the first time that a Tesla has driven to Mt. Everest’s base camp. That would be a Model 3 that was driven in September 2020. That vehicle, which went on a long 5,500 km (3,400-mile) journey, was manually driven to its destination.
In April 2021, Tesla China announced that it has completed the buildout of 11 Supercharger stations in the picturesque route from Chengdu to Tingri. This route would allow drivers to reach the base camp of Mt. Everest. Sure enough, in July 2022, Tesla China shared a video of two Teslas—a Model X and Model Y—reaching the Everest base camp without any issues. Numerous other Tesla drivers have since taken on the long, picturesque journey.
Check out this Tesla Model Y’s journey to the Mt. Everest base camp in the video below.
Tesla offers legacy Model Y owners an interesting promotion
Tesla exec shares unique Supercharger team rule that accelerates EV adoption
Tesla Model 3 driver is using FSD to travel to Mt. Everest Base Camp
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