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Tesla’s rise amid the chip shortage shows a dire need for innovation in the auto sector

(Credit: Tesla)

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3 years ago

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One of the most impressive things about Tesla’s stellar Q3 2021 vehicle production and delivery results was the fact that the company was able to hit new records in the middle of a chip shortage crisis. The effects of the chip crisis are substantial, with fellow American automaker General Motors laying the blame for its 33% year-on-year drop in sales to “semiconductor supply chain disruptions and historically low inventories.”

Tesla’s strategy to weather the semiconductor shortage is no secret. In its Q2 2021 Update Letter, Tesla stated that its team “demonstrated an unparalleled ability to react quickly and mitigate disruptions to manufacturing caused by semiconductor shortages.” Tesla was able to do this by using software and new microcontrollers to build its vehicles. The chip shortage still adversely affected Tesla, but not to the same degree as its peers in the automotive sector. 

While Tesla’s Q3 2021 production and delivery results are proof that flexibility and a notable degree of vertical integration are key to weathering the global semiconductor crisis, it also shows that the auto sector is in dire need of some innovation. This was explained by Intel Chief Executive Pat Gelsinger in a statement to Fortune last month. According to Gelsinger, the chip shortage in the auto sector is partly due to the fact that most cars today still use chips that are, in a lot of ways, already primitive. 

When the pandemic hit, big-ticket items like cars were pushed back while sales of home consumer devices increased. By the time the auto segment bounced back months later, chipmakers like Intel had already reallocated their capacity. And since dozens of chips for vehicles’ systems like electronic brake systems typically rely on obsolete technology, automakers found themselves with very little supply of components such as transistors that can be anywhere from 45 nm to 90 nm in size.

According to the Intel executive, he has been bombarded with requests to invest in new production capacities for semiconductors that were, at best, state-of-the-art when the original Apple iPhone launched in 2007. If carmakers used newer chips, however, then the semiconductor shortage would not be as detrimental to the auto sector. 

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“I’ll make them as many Intel 16 [nanometer] chips as they want. It just makes no economic or strategic sense. Rather than spending billions on new ‘old’ fabs, let’s spend millions to help migrate designs to modern ones,” Gelsinger said. 

The use of updated chips is something that seems inherent in companies like Tesla, as well as newcomers to the production EV market such as NIO, Rivian, and Lucid. In a way, the Intel executive’s statement rings true. There is very little incentive to ramp the production of obsolete chips, after all, especially if newer, better ones are available. Legacy automakers would just need to be bold enough to innovate. This is something that was specifically highlighted by ARK Invest Founder Cathie Wood recently, when she noted that EVs actually need more chips than regular cars.

Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla stores continue to face anti-Musk protests

Scenes from a protest outside of Tesla’s store in Loveland, Colorado.

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9 hours ago

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March 15, 2025

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Tesla stores have been the target of widespread protests and vandalism in recent weeks, after Elon Musk made a controversial gesture in January, and as he and the Trump administration’s newly created government efficiency division continues to gut federal agencies.

On Saturday, I went to the Tesla store in Loveland, Colorado, where demonstrators were already protesting upon my arrival at roughly 12:45 p.m. MT.  Walking up to the protest, I could see scattered groups of demonstrators lined up along about two blocks, spanning from the Tesla store to a nearby intersection and Sprouts location. One protestor said he had counted about 230 people at around 1:00 p.m. MT.

The protest felt generally peaceful, with cars driving by and honking, and demonstrators leaving a large space between the front of the Tesla store and the sidewalk, easily allowing workers and customers to go in and out.

You can see a few videos and photos from the site below, along with some of the responses I got from protestors and a prospective customer.

READ MORE ON TESLA PROTESTS AND VANDALISM:

I spoke to about a dozen protestors about what they were protesting against. Most said they were there to condemn Musk’s recent federal worker and program cuts with the Trump administration, his performance of what some said resembled a Nazi salute at Trump’s inauguration ceremony in January, or the administration’s recent attacks against transgender and queer individuals.

One protestor, Elsa, identified as a former Republican and said she was “highly concerned that our Constitution is being ignored,” especially with regards to the three branches of government and the system of checks and balances.

“It surprises me that, even if you voted for Trump, or you believe in capitalism, which, I didn’t vote for Trump, but I do believe in capitalism — I’m a former Republican, I was a Republican for most of my life — but it’s dangerous to have power rest in a handful of ultra-wealthy people,” Elsa said.

“And our whole country needs to realize that,” she adds. “This to me is not even Republican or Democrat at this point.”

Instead, she says it now comes down to whether people want to give billionaires huge tax breaks, or to use that money to support a range of groups in the U.S., including those who have social security benefits, are veterans, or are 9/11 survivors seeking cancer treatments, as a few examples.

Another protestor, Mary, said she was taking part in the demonstration “because she loves this country and democracy,” adding that she wanted to help preserve democracy for her grandchildren.

Still another protestor, Bryan, said that they were protesting because of the Trump administration and Musk’s attempts to erase transgender, non-binary, and queer people from history, drawing comparisons to the rise of fascism in Nazi Germany, where early human rights violations were lodged against gay and queer communities.

“I’m here because I have to be,” Bryan said. “I’m afraid of the future.”

Yet another person and his family were holding Ukraine flags, saying that they were protesting for a wide range of reasons, but especially for Trump’s recent meeting with Ukraine President Volodymyr Zelenskyy and Musk’s claims that the top Ukrainian executive was to blame for what he has called a “forever war.”

While most protestors appeared to be generally friendly, especially with each other, I did hear a few exchanges between demonstrators and those with other opinions. While I heard more cars honking throughout the experience, seemingly in support of the protests, I also noticed a few from which passengers yelled things like “Go Trump.”

“Direct action, we need to stop these fascists with direct action,” one protestor yelled in response.

Additionally, I also talked to a prospective customer, Kristy, who was there for a test drive and said she had a negative experience with the protestors.

“I was test driving a Tesla, and as we pulled in and parked right here, this black one, these people right here in the middle yelled at me, ‘Hope you’re turning in your f*cking Nazi car,’ and I said ‘F*ck you,’” Kristy explained.

“And they’re like ‘F*ck you too, you’re a Nazi, f*cking Nazi lovers.’ And so, they’re just yelling racial slurs at me, and I’m far from a Nazi.”

Tesla store advisers declined to comment on the protests, and so did Loveland police.

Other Saturday protest footage from Tesla stores in California, Texas, and New York

The Loveland Tesla store has also been the site of repeated attacks in recent weeks, with authorities on Friday making a second arrest following multiple incidents. You can see the Department’s press release for the arrest below.

The protest was also part of widespread demonstrations on Saturday, and it’s just the latest in actions targeting Musk’s electric vehicle (EV) company, some of which have included acts of vandalism, graffiti, arson, and even the use of weapons on Tesla storefronts.

Multiple other protests were also captured in footage on Saturday, including one in Santa Rosa, California, as shared by the San Francisco Chronicle, and another attended by conspiracy theorist Alex Jones in Austin, Texas. Still another was captured in New York City, and you can see footage from each of these protests below.

Tesla vandalism cases under investigation by FBI Seattle

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Musk sets a date for Starship trip to Mars with Optimus on board

Optimus could be the first humanoid to make it to Mars, and Musk has set a date for when he thinks it’ll happen.

Published

14 hours ago

on

March 15, 2025

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Credit: SpaceX

Elon Musk has shared when he expects to take Starship to Mars for its first uncrewed mission, and he also says Tesla’s Optimus humanoid robot will be on board for the flight.

On Friday, Musk wrote on X that SpaceX’s reusable Starship rocket will take Optimus to Mars at the end of 2026, with human landings expected to commence a few years later.

“Starship departs for Mars at the end of next year, carrying Optimus,” Musk said. “If those landings go well, then human landings may start as soon as 2029, although 2031 is more likely.”

Last year, the SpaceX and Tesla head also expectations that SpaceX would be able to begin uncrewed launches in 2016, with early launches including both Optimus and a Cybertruck unit.

Musk also followed up the announcement with a post on X on Saturday morning, noting that he expects SpaceX to launch more than 90 percent of Earth’s payload mass to orbit this year. Meanwhile, he says China will make up just around 5 percent, while the rest of the world, including other parts of America, would also make up just 5 percent.

He also predicted that that number would go up even further to nearly 100 percent, once SpaceX’s reusable rocket is being launched more frequently.

“When Starship is launching at high rate, SpaceX will probably carry >99 percent of Earth’s payload mass to orbit. This is necessary to make Mars a self-sustaining civilization,” Musk added.

READ MORE ABOUT SPACEX’S STARSHIP: Texas awards SpaceX $17.3M grant to expand Bastrop tech hub

To be sure, Musk has been known to make ambitious claims about when his companies’ products would achieve certain milestones. For example, Musk predicted in 2018 that SpaceX could launch a rocket to Mars with humans aboard by 2024, though SpaceX only began testing the company’s reusable Starship in 2023.

Still, the company has been routinely testing Starship since then, and with increasing frequency, and in October, SpaceX performed the first catch of the Starship’s Super Heavy booster after liftoff to demonstrate the concept that a reusable rocket could be possible. In a launch earlier this month, SpaceX again successfully caught the Super Heavy Booster, though it lost the upper stage to a “rapid unscheduled disassembly,” effectively meaning that it had exploded in air and showered surrounding areas with rocket parts.

The explosion was the second consecutive launch in which debris from Starship reigned down, highlighting the continued importance of testing as SpaceX aims to make the rocket a viable product for reusable space travel.

On Friday, SpaceX also launched its Starliner spacecraft to the International Space Station (ISS) to rescue astronauts that have been stuck on the orbital craft, after a Boeing launch was originally intended to bring them back to Earth. While SpaceX attempted to rescue the two astronauts in September, issues with the Starliner craft’s thrusters discovered upon arrival made NASA hold off on approving the return mission.

SpaceX completes a new first with recent Falcon 9 launch

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U.S. AG Pam Bondi: Tesla Molotov attack suspect facing up to 20 years in prison

The U.S. Attorney General confirmed that a Tesla attacker, who threw Molotov cocktails at a store, is now facing up to 20 years in prison.

Published

1 day ago

on

March 14, 2025

By

The White House, Public domain, via Wikimedia Commons
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

It appears that an anti-Tesla activist who is suspected of throwing Molotov cocktails at one of the electric vehicle maker’s stores is now looking at a potentially long prison sentence. 

This is, at least, as per United States Attorney General Pam Bondi, who recently shared her insights in a FOX News segment.

Tesla Attacks and Trump Warning

Tesla locations and vehicles have been subjected to numerous attacks as of late, from stores being shot up to vehicles being vandalized and set on fire in suspected arson incidents. In one case, a Tesla store in Salem, Oregon, was attacked with Molotov cocktails.

President Donald Trump has issued a stern warning to people attacking Teslas, stating that he considers such actions as domestic terrorism. While addressing the issue, Trump warned that anyone caught deliberately harming Tesla will be going through “hell.”

Attorney General’s Update

During a recent FOX News segment, US Attorney General Pam Bondi reiterated that anyone targeting others over political beliefs would be caught and punished accordingly. She highlighted that investigations are underway to find out who is behind the violent actions, and she also confirmed that a Tesla attacker, who threw Molotov cocktails at a store, is now facing up to 20 years in prison.

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“If you targeted someone, if you went after someone because of their political affiliation, we will be investigating you. We will be looking at you, because that’s the weaponization, and it has to stop. For instance, look what they’re continuing to do to Elon Musk. They are targeting Tesla dealerships, the stations where you charge a Tesla. They’re vandalizing cars. I have already directed an investigation be opened to see how this is being funded. Who is behind this? 

“We have people we’re locking up on that. We have someone in jail right now from one of the dealerships. They threw a Molotov cocktail through a dealership. They’re looking at up to 20 years in prison. So, if you’re going to touch a Tesla, go to a dealership, or do anything, you better watch out, because we’re coming after you. And if you’re funding this, we’re coming after you. We’re going to find out who you are,” Bondi stated.

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