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Elon Musk: Tesla’s biggest challenge is supply chain, but it’s not a long-term issue

[Credit: HBO]

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Tesla CEO Elon Musk said that his company’s biggest issue in the short term is supply chain, especially when it comes to microcontroller chips.

“Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it,” Musk said in a Tweet during the early morning hours on Wednesday. “Fear of running out is causing every company to overorder.”

For months, the automotive industry has been confronted with a shortage of semiconductors and microcontroller chips. These chips help control the “brain” of a vehicle and can operate everything from fuel injection systems in combustion engine cars to infotainment systems in electric cars. This year, there has been a major shortage due to overbuying by large automotive manufacturers, a situation that has been caused by tensions between the United States and China. China is a global powerhouse in semiconductor chip production, and companies have panic bought large quantities of these chips to compensate for the possibility of running out.

Several automakers have shut down production lines in various regions globally due to not having enough semiconductors or microcontrollers to handle regular production rates.

Musk compared the issue to the toilet paper shortage that occurred last year during the COVID-19 pandemic. Consumers panic bought toilet tissue due to the fear of being quarantined for an extended period of time. This ultimately caused a massive shortage, and large retailers were forced to limit the quantity that could be purchased per family to remain stocked.

Despite the short-term problems that this has caused Tesla and many other large car companies in the world, Musk believes that it won’t affect his car company down the road. “It’s obv[iously] not a long-term issue,” the CEO added.

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Tesla was able to avoid some of the semiconductor shortages by pivoting away from the tech altogether. In the company’s Q1 2021 Update Letter, Tesla outlined how it navigated through supply chain shortages by utilizing microcontrollers instead.

The company wrote:

” In Q1, we were able to navigate through global chip supply shortage issues in part by pivoting extremely quickly to new microcontrollers, while simultaneously developing firmware for new chips made by new suppliers.”

Tesla has been able to distance itself from production halts at its factories, apart from a rumored two-week hiatus in Model Y production lines at Giga Shanghai in China. Instead, Tesla has refined its products and continued to work on releasing the new Model S and Model X vehicles that the company redesigned and released in January. Deliveries on the new Model S are expected to begin on June 10th with a dedicated delivery event at Tesla’s Fremont Factory in Northern California.

What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.

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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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Elon Musk

SpaceX’s next project will produce Starships at a level that sounds impossible

1,000 rockets per year is an insane number, especially considering Starship’s sheer size.

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Credit: SpaceX

Elon Musk has revealed bold plans for SpaceX’s newest Starbase facility in Texas, predicting it will become a birthplace for “so many spaceships.” The upcoming “Gigabay,” a massive $250 million production hub in Starbase, Texas, is designed to manufacture up to 1,000 Starship rockets per year.

That’s an insane number of rockets for a single facility, especially considering Starship’s sheer size. 

One of the world’s largest industrial structures

SpaceX’s Gigabay is expected to stand roughly 380 feet tall and enclose 46.5 million cubic feet of interior space, making it one of the largest industrial structures to date. The facility will feature 24 dedicated work cells for assembling and refurbishing Starship and Super Heavy vehicles, complete with heavy-duty cranes capable of lifting up to 400 U.S. tons, as noted in a Times of India report.

Construction crews have already placed four tower cranes on-site, with completion targeted for December 2026. Once operational, the Gigabay is expected to boost SpaceX’s launch cadence dramatically, as it would be able to build up to 1,000 reusable Starships per year, as noted in a report from the Dallas Express. Musk stated that the Gigabay will be “one of the biggest structures in the world” and hinted that it represents a major leap in Starbase’s evolution from test site to full-scale production hub.

A key step toward Mars and beyond

Starship is SpaceX’s heavy-lift rocket system, and it remains a key part of Elon Musk’s vision of a multiplanetary future. The vehicle can carry 100–150 tonnes to low Earth orbit and up to 250 tonnes in expendable mode. With several successful flights to date, including a perfect 11th test flight, the Starship program continues to refine its reusable launch system ahead of crewed lunar missions under NASA’s Artemis initiative.

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Starship is unlike any other spacecraft that has been produced in the past. As per Elon Musk, Starship is a “planet-colonizer” class rocket, as the magnitude of such a task “makes other space transport task trivial.” Considering Starship’s capabilities, it could indeed become the spacecraft that makes a Moon or Mars base feasible. 

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Elon Musk

‘You chose ambition’: Tesla Chair hails shareholders for backing Elon Musk’s vision

Denholm stated that the vote highlighted TSLA investors’ continued confidence in both Musk’s leadership and Tesla’s vision for an autonomous, AI-driven future.

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(Credit: Tesla)

Tesla Chair Robyn Denholm has issued a letter to shareholders celebrating what she described as “overwhelming support” at this year’s Annual Meeting, framing the approval of Elon Musk’s trillion-dollar pay plan as a defining moment in Tesla’s mission. 

Denholm stated that the vote highlighted TSLA investors’ continued confidence in both Musk’s leadership and Tesla’s vision for an autonomous, AI-driven future.

Denholm hails shareholder confidence

In her letter, which was posted by the electric vehicle maker on X through Tesla’s official handle, Denholm thanked investors for backing Proposals One, Three, and Four, items she said reaffirm Tesla’s “Master Plan Part IV” and its broader mission to accelerate sustainable prosperity. She characterized the shareholder vote as “a vote of confidence in our visionary leader, Elon,” crediting Musk with transforming Tesla into one of the most valuable companies in history.

“In a year when many tried to sow doubt and negativity, you chose a better future,” Denholm wrote. “You chose ambition. You chose to see what is possible. You chose to back the people who have been in the room since the earliest days, fighting for the mission that first brought us all together—a better world for humanity,” she wrote in her letter. 

Her comments framed Musk’s pay package approval not only as a governance milestone but as a symbolic endorsement of Tesla’s long-term trajectory across autonomy, AI, and energy innovation.

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“A whole new book” of innovation

Denholm highlighted Tesla’s push toward autonomy as the company’s next major growth phase, citing the Robotaxi program and Optimus humanoid robot as examples of bringing artificial intelligence “into the physical world.” She described this period as potentially “the largest value-creation event in Tesla’s history, and quite possibly in the history of humanity.”

The letter reaffirmed the board’s commitment to direct engagement with shareholders through Tesla’s online platform and live events. Denholm emphasized that feedback from investors “informs our strategy and strengthens us” as Tesla prepares for new technology rollouts and expanded AI capabilities.

“You, our shareholders, have given us the mandate and the runway to execute. We are humbled, and rest assured that we do not take that responsibility lightly… Thank you for believing in Tesla. Thank you for standing with us. We look forward to years of bold leadership and pioneering innovation, fueled by our commitment to creating a better future for all,” she wrote.

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Tesla Takedown group prepares anti-Elon Musk effort on November 15

Organizers also emphasized that “Tesla Takedown is a peaceful protest movement. We oppose violence, vandalism and destruction of property.”

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Rhododendrites, CC BY-SA 4.0 , via Wikimedia Commons

A coalition of activists has announced a coordinated “Tesla Takedown” Day of Action on November 15, urging participants worldwide to protest Tesla CEO Elon Musk’s newly approved 2025 performance award. 

Organizers described the movement as a peaceful protest against what they view as excessive corporate power and wealth concentration in the hands of one individual.

Activists try again

Tesla Takedown organizers said their November 15 protests will coincide with the nine-month anniversary of their first weekend of action. In a public statement, the group called on supporters to “host or join an action in your community” under the banner #NoTrillionaires, framing the event as a stand against billionaire influence in politics and technology.

“Fascism is on the march in America and around the world. Institutions and elites are caving. We’re fighting back. No one is doing more to fuel the rise of fascism than Elon Musk. Now, Tesla shareholders want to supercharge his assault on democracy by making him a trillionaire. Yes, with a T. That will make him even more dangerous. The good news is, we CAN stop him. His insane trillion-dollar incentive package depends on hitting huge benchmarks. That’s where all of us come in,” the group wrote.

Organizers also emphasized that “Tesla Takedown is a peaceful protest movement. We oppose violence, vandalism and destruction of property. This protest is a lawful exercise of our First Amendment right to peaceful assembly.”

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The group’s emphasis on opposing violence and vandalism is a welcome statement considering that previous Tesla Takedown protests have resulted in arrests and chaos in the past. Earlier this year, anti-Tesla individuals vandalized, firebombed, and shot at several Tesla locations in protest of Elon Musk.

Musk’s pay package

The planned demonstrations follow Tesla shareholders’ recent approval of CEO Elon Musk’s 2025 performance award, a landmark pay plan that could make him the world’s first trillionaire if key performance and valuation goals are achieved. Over 75% of shareholders voted in favor of the award during Tesla’s 2025 Annual Shareholder Meeting, where Musk appeared on stage to thank investors alongside the company’s humanoid robot, Optimus.

The pay plan links Musk’s compensation to ambitious operational and stock price milestones that could see Tesla become the world’s most valuable company by a wide margin with a market cap of $8.5 trillion. Musk is also required to hit several product targets for the electric vehicle maker. These include the delivery of 20 million Tesla vehicles cumulatively, 10 million active FSD subscriptions, 1 million Tesla bots delivered, and 1 million Robotaxis in operation.

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