Tesla is surviving worldwide chip shortage by rewriting motor vehicle computer software, says Musk

Tesla logged a $1.1 billion financial gain in the second quarter of 2021 in spite of the world-wide semiconductor shortage partly thanks to its endeavours to rewrite the software code of processors in its electric powered vehicles, the business famous on Monday.

The global semiconductor shortage induced by a concoction of diverse aspects, together with the Covid pandemic and trade-war amongst US and China, have led to quite a few car factories these as Jaguar Land Rover to shut down factories, and other people like Renault and Honda to encounter manufacturing delays.

On the other hand, Tesla has maintained substantial degrees of generation, delivering close to 200,000 automobiles in the past three months, the company reported in its most up-to-date quarterly report.

“In the 2nd quarter of 2021, we broke new and noteworthy documents. We created and shipped above 200,000 autos, accomplished an functioning margin of 11.% and exceeded $1B of GAAP net revenue for the initial time in our historical past,” Tesla famous, incorporating that it produced a revenue of $11.9 billion in the quarter with $1.1 billion financial gain.

Tesla’s electric motor vehicles use a extensive selection of semiconductor chips to electric power its distinctive modules, which includes its seat belts and airbags.

The organization mentioned it used alternate chips, with its software group reprogramming them within weeks to keep large degrees of creation.

“Our electrical and firmware engineering teams continue being hard at function designing, creating and validating 19 new variants of controllers in response to ongoing semiconductor shortages,” the corporation observed in its quarterly report.

“We ended up capable to substitute substitute chips, and then generate 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,” Musk was quoted saying by The Verge.

Irrespective of offer chain troubles and world shortage of semiconductors, the firm explained its application group could support retain manufacturing operating “as near to comprehensive capability as probable.”

“With international automobile demand from customers at file degrees, part offer will have a sturdy influence on the level of our shipping growth for the rest of this year,” Tesla pointed out.