New semiconductor factories will end the global car chip shortage next year – Tesla’s Musk

TURIN, Sept. 24 (Reuters) – Elon Musk, CEO of Tesla Inc (TSLA.O), said Friday that the global chip shortage that has plagued the auto industry this year is thanks to new semiconductor plants being planned or under construction are, should be short term in nature.

When asked how long he thinks the global chip shortage would affect vehicle production, Musk said, “In the short term, I think”.

“A lot of chip factories are being built,” Musk said during a joint meeting with Stellantis (STLA.MI) and Ferrari (RACE.MI) chairman John Elkann at Italian Tech Week.

“I think we will have good capacity to provide chips next year,” he added.

The two leading companies in the automotive industry agreed on possible support from nuclear power in order to meet the increasing global energy demand.

The chairman of Stellantis and Ferrari John Elkann speaks via video conference with Tesla founder Elon Musk during the “Italian Tech Week” event in Turin, Italy, September 24, 2021. REUTERS / Massimo Pinca

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“I’m surprised that some countries have recently turned away from nuclear energy, which is safe,” said Musk.

But in their dialogue, they avoided referring to competition issues between leading e-mobility leaders like Tesla and old automakers who are now investing heavily in expanding their range of electrified vehicles.

However, Musk thanked Elkann for the support given to Tesla between 2017 and 2019 by Comau, the Fiat Chrysler robotic unit now owned by Stellantis, during what he called “the most painful time” for his company in connection with the Start of production has received on model 3.

“John has helped me a lot during that time,” Musk said, adding that Tesla was close to bankruptcy “half a dozen times”.

Stellantis CEO Carlos Tavares said the group, formed by the merger of Fiat Chrysler and France’s PSA, expects to meet its European carbon emissions targets this year without credit-bought loans from Tesla.

Reporting by Giulio Piovaccari, writing by Nick Carey, editing by Louise Heavens

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