Tesla Masterfully Avoided Microchip Crisis Thanks To Controlling Own Software; Record Sales In 2021
Summary
Most carmakers worldwide have been suffering for months the ongoing microchip crisis, which made them a scarce commodity and forced production of some models to be postponed or suspended for long periods. Most traditional car manufacturers dont have that option because their computer software (which in most cases is not open source, that is, it comes in a closed "black box" that is not accessible) and hardware are also under control of the suppliers. In fact, as The New York Times reports, in many cases those traditional OEMs also relied on those same vendors to deal with microchip manufacturers, thus losing the bargaining power needed to negotiate. Teslas unified computing architecture and AI standards have not gotten many headlines on social media or the press, but it has surely provided a very sizable competitive advantage since the early days of the company. Now, several years later, the whole automobile industry is starting to realize that there is way more to adopt from Tesla than just its philosophy when it comes to creating successful electric cars, and that they must take control of the computer systems and software of their vehicles for their own benefit.