Tesla cuts control units in cars to counter chip shortage

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(RTTNews) – Electric vehicle maker Tesla, Inc. (TSLA) is removing one of the steering console control units from some of the Chinese-made Model 3 and Model Y cars to hit fourth-quarter sales record amid the growing semiconductor crisis. The milestone, reported by CNBC, was not announced by the manufacturer as it has shipped thousands of these models for sale in China, Australia, the UK and other European markets.

The manufacturer has not informed customers as it believes that the absence of the part will not hinder the driving experience. The company fared better than many other companies that had to stop production due to supply chain issues.

Musk told a conference last month that the shortage would not be a long-term problem and he also accused other makers of hogging chips, creating a toxic cycle of chip shortages.

Modified cars, while they won’t have trouble using the level 2 assisted driving feature, won’t have the full self-driving feature available to them which costs $12,000 or $199 more. per month. In order for the software to be activated in the cars, the owners had to take it to a company workshop and retrofit the column.

Musk has used the controversial FSD feature as one of the car’s main selling points and promised just last month that the feature will be available by the end of this year. “I personally assume that we will achieve full self-driving this year at a much higher level of safety than a person. So the cars in the fleet will essentially become self-driving via a software update I think might end up being the biggest increase in asset value of any asset class in history. We’ll see,” Musk said during the earnings call.

The company expects to fix any bugs that may result from such a call through its over-the-air software updates.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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