Elon Musk is currently in a bad seat after its popular Tesla electric cars suddenly received massive price hikes. The CEO finally confirms the reason.
Elon Musk said that Tesla price hikes are caused by something that is also faced by other tech giant firms and electric vehicle creators. The popular tech CEO confirmed that the reason behind the price increase is a lack of material need to make a Tesla EV.
He said this statement after one of his fans asked why Tesla vehicles are becoming more expensive than usual. A Twitter user said that he “really don’t like the direction @tesla is going raising prices of vehicles but removing features like lumbar for the Model Y. On top of rumors of FSD increase to $14k without any real added features to FSD unless you’re a beta tester.” On the other hand, Elon Musk answered this question.
The tech CEO explained that “moving lumbar was removed only in the front passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no usage. Not worth cost/mass for everyone when rarely used. Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially.” Elon Musk’s tweet was able to generate more than 650 comments, 5,100 likes, and 580 retweets.
Aside from the chip shortage, Elon Musk also previously blamed other companies and giant tech firms that are hoarding these chipsets. He even said that the issue right now is comparable to the previous toilet paper panic-buying, which started when the global COVID0-19 pandemic hit the U.S. and other countries across the globe.
Although this is the case, Elon Musk announced that he and Tesla are still working on various plans that would help their Tesla productions solve the chip shortage issue. Here are some of their proposed innovations.
Tesla’s Plans to Solve chip shortage
The tech CEO previously announced that Tesla is currently looking into making advanced payments to its chip manufacturer partners. However, some experts claimed that this could even lead to a more severe price increase since making the advance payment would be more pricey.
They claimed that the automaker’s Tesla electric vehicles could be faster to produce, but they will certainly be more expensive. On the other hand, Musk also said that he is considering buying a chip plant for Tesla so that the giant EV manufacturer no longer needs to rely on third-party developers.
But, just like the advance chip payments, critics and various EV experts said that buy a chip production plant could also be expensive. Although this is the case, the automaker will save more money when it comes to chipsets, which are essential components when building Tesla cars. Why? Because they no longer need to buy this item from other companies. They could even conduct some researchers on how to make more efficient SoCs without using expensive materials.
Meanwhile, the automaker also decided to drop its Autopilot radar. Tesla Inc confirmed that it finally dropped radar sensors from its semi-autonomous driving system, Autopilot, raising concerns over the safety of the camera-only version, Tesla Vision. Tesla aims to make the driver-assist system fully self-driving, and many in that young industry are skeptical that a vision-only system will work, saying such systems face challenges in darkness, sun glare, and poor weather conditions.