All right, been doing some research. The pandemic, terrible weather from nonexistent climate change and half bright business leader types are the culprits.
1) Texas factories that make foam for a variety of products from furniture to auto seats to child carseats were damaged by last winter's storm. Many were knocked off line causing a backup. There is also a shortage of the chemicals used to make foam. This has delayed many products. (I've personally be waiting for a new c-pap machine to replace the one that broke last summer since early November. If you go on line to try and purchase a C-pap, they're not to be had anywhere -- C-pap machines use a lot of foam). Obviously, Tesla is affected.
2) The microchip shortage is now said to probably last throughout this year. COVID protocols that caused people to work from home along with an explosion in demand for consumer products, and yes onboard computer/processors for autos (notably self-driving tech) are way behind demand.
3) The microchip market is expected to double from the current $500 billion to $1 trillion over the next 2-3 years. COVID shut down several chip manufacturers in Asia for several months. It also didn't help that the Chinese SHUT DOWN industrial production for hundreds of miles around Beijing to ensure there would be blue skies for the (*&^&^&* Olympics, compounding the problems.
4) There is even a shortage of chips that are used in machines that build the machines to make microchips.
5) Intel has announced it is investing $20 billion to make a new microchip factory in Ohio; it will take 2-3 years to complete. Other Asian microchip manufacturers, such as Taiwan Semiconductor Manufacturing (TSMC) and Samsung are DEMANDING ridiculous tax breaks before they will commit to building the new plants they've announced.
"The supply chain bottlenecks of the past two years are part of the reason there’s such urgency to create more chip manufacturing capability in the U.S. Unable to get the chips used in manufacturing cars, U.S. automakers such as General Motors
idled some North American plants last year and resorted to manufacturing some cars without features that require chips. That’s made it more difficult for U.S. consumers to buy cars,
driving the price of used cars up 24% over the course of a year, and slowing national economic growth.
Supply chain bottlenecks have motivated big companies to start increasing capacity in the U.S.; Intel itself said last year it would spend $20 billion to build two major factories in Arizona, and in 2020, the global leader in chip manufacturing Taiwan Semiconductor Manufacturing Co. (TSMC),
said it would spend $12 billion to build a semiconductor factory, also in Arizona. Samsung is investing $17 billion in a chip plant in Texas."
- Time Magazine
6) I've posted something similar before, but to keep it in front of us: In the 1990s, U.S. companies decided to outsource a large % of our manufacturing capacity to China to take advantage of "cheap" labor. Our brilliant CEOs ignored that China is an authoritarian state. They were so eager to gain access to Chinese markets they signed prohibitive deals that forced them to partner with Chinese companies; even worse, the Chinese partners all had majority control. The Chinese used to partnerships to learn their "partners'" tech secrets, stole them, and built their own companies to compete with their American, French, British, what have you partners. Now add in the "brilliant" concept of just in time manufacturing. The idea is a part or even a whole product is not made until an order exists with consumers waiting at the other end. The factory, like FoxCon, makes the stuff and it's immediately loaded onto a ship, sent to LA or elsewhere, where it is promptly unloaded, put on rail cars or in trucks and is in the store or Amazon's warehouses in days. The concept is to avoid having a lot of capital sitting around in warehouses. Well, COVID caused the supply chain to break down. Delay after delay piled up even as demand exploded outside China. Oh, now add in that transport companies screw over truck drivers with low wages. It's a lonely, demanding job and there aren't enough truck drivers to move all the freight necessary. It's now estimated that the U.S. will have a shortage of 180k truck drivers by 2030.
7) As some may have noticed, the Chinese economy is in a tailspin. The Central Committee in its wisdom doesn't allow ordinary citizens to invest in the kinds of things we do (i.e. stocks & bonds). The only investment, in reality, they're allowed to make is to invest in real estate. Even there, it's only a lifetime investment. If you own a 2nd or 3rd house or whatever, when you die ownership reverts back to the state. Having nowhere else to turn to save for retirement, the Chinese people invested in real estate, much of it in ghost cities where no one actually lives. This created a real estate bubble that makes the one we had in 2007 look paltry in comparison. To cash in, Chinese developers went deeper and deeper into debt to build new housing to sell that no one wants to live in. That bubble has burst. Several of China's biggest development companies have defaulted on bonds they sold to finance further unneeded housing construction.
8) The Chinese economy is in the tank. China's all wise Central Committee has basically allowed the real estate bubble to burst. More companies are defaulting on interest payments on bond type investments they sold. This is tanking the entire economy with consumer demand imploding. The suddenly fearful and broke Chinese people have stopped buying stuff. Once busy malls are ghost towns. On top of this, the CentCom has decided to bring the hammer down on many business sectors spinning the into financial crisis. (Pssst, American CEOs, authoritarian regimes tend to do stuff like this). Meanwhile, with demand falling, many companies from outside China have closed their factories and are taking them home or are relocating to other cheap labor markets like Vietnam. Wal Mart, for example, has been closing stores all over China. European hypermarkets are doing the same. We're not talking a few hundred or thousand store and factory shutdowns, it's thousands upon thousands.
9) Bringing it around to Tesla, that means it's a struggle to get everything from foam for car seats to chips to put in the car's onboard computer. It's a freaking mess. Is Elon partly to blame for being overly optimistic? Yeah. But the bulk of the blame lies with this "chase the cheap labor to China" and "just in time" crowd. They're the ones who supply many of the parts to make a Tesla and I hold them primarily responsible.
10) The China solution DID NOT WORK. Until our genius CEOs stop treating the rest of us like chattel to be discarded at every opportunity, this kind of stuff will continue. A CEO can put together the most brilliant PowerPoint position ever seen -- but if there's no one around to make the stuff, transport it and get it on the shelves -- how valuable is that slideshow? It ain't worth spit. Plus, according to the business press, they're busy right now giving themselves 20%+ raises and profits are way up as well. IOW, they're taking advantage to raise prices exorbitantly on us and are bragging about it to their shareholders. Ain't that cute?
I haven't had a decent night's sleep since last July. My MX now looks like it won't be here until then earliest. I'm mad as a hornet and want to string up a few CEOs and business gurus for therapy, but there's probably a rope shortage too.