Musk says new chip plants will end global shortage next year

Europe

TURIN — Tesla CEO Elon Musk said there is an end in sight for the global chip shortage that has pummelled the car industry this year thanks to new semiconductor plants that are planned or under construction.

Asked how long he thought the global chip shortage would affect vehicle production, Musk said: “short term I think.”

“There’s a lot of chip fabrication plants that are being built,” Musk said during an online discussion on Friday with Stellantis and Ferrari Chairman John Elkann, at Italian Tech Week.

“I think we will have good capacity for providing chips by next year,” he added.

The two automotive industry leaders agreed on potential support coming from nuclear power to cover for increasing global energy needs.

“I am surprised by a recent move away of some countries from nuclear energy, which is safe,” Musk said.

But in their dialogue they avoided referring to competition issues between top electric mobility leaders such as Tesla and legacy automakers now investing heavily to expand their lineups of electrified vehicles.

Musk however thanked Elkann for support Tesla received between 2017 and 2019 from Comau, the robot unit of Fiat Chrysler Automobiles, now part of Stellantis, during what he called “one of the most painful periods” for his company, linked to the launch of Model 3 production.

“John helped me a lot in that period,” Musk said, adding Tesla had come close to bankruptcy “half a dozen times.”

Stellantis CEO Carlos Tavares has said the group, formed through the merger of Fiat Chrysler and France’s PSA, expected to achieve its European carbon dioxide emission targets this year without credits bought from Tesla.
 

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