Elon Musk says global chip shortage will end next year

Key Points:

·         Elon Musk calls global chip shortage a “short term” problem.

·         Musk thanks the new semiconductor plants either under construction or being planned for resolving the issue.

·         Musk highlighted the support from nuclear power to cover for growing global energy needs.

Tesla Inc CEO Elon Musk said on Friday the global chip shortage is short term in nature and would be over by next year.

Musk said that he thinks the global chip shortage would affect vehicle production only for a “short term.”

He thanked the new semiconductor plants which are either under construction or being planned.

During a joint session with Stellantis and Ferrari Chairman John Elkann at the Italian Tech Week, Musk said, “There's a lot of chip fabrication plants that are being built.”

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

Both Musk and Elkann highlighted the support from the nuclear power to cover for growing global energy needs.

In the joint session, Musk thanked Elkann for the support from Comau, the robot unit of Fiat Chrysler which is now the part of Stellantis, to his automotive company Tesla between 2017 and 2019.

He called the duration “one of the most painful periods” for his company which was related to the launch of Model 3.

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

Stellantis Chief Executive Carlos Tavares has said that the company expects to achieve the European carbon dioxide emission targets this year.

(With inputs from Reuters)

Picture Credits: Getty Images