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Tesla M3 production shutting down due to chip shortage

Dilly

Active Member
Feb 24, 2020
2,867
2,306
Norfolk
isn't this specifically a Texas winter storm issue due to the power outages at their Texas plant? that shut down on the 14th Fremont allegedly a few days later.
That's the problem with JiT manufacturing
I was a buyer at Roll-Royce. They tried JiT for a year. Dismal failure. The expectation that sub-contractors and suppliers will do your stock holding for you never caught on.
 
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Glan gluaisne

Active Member
Supporting Member
Sep 11, 2019
2,782
2,917
UK
isn't this specifically a Texas winter storm issue due to the power outages at their Texas plant? that shut down on the 14th Fremont allegedly a few days later.
That's the problem with JiT manufacturing

It seems to be a widespread global shortage of chips: The World Is Short of Computer Chips. Here’s Why

Don't think it's related to either JiT or the recent bad weather in parts of the US, as it seems to be hitting many other manufacturing areas as well.
 
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Tesla chips came from Texas Instruments plant in Texas, which was out due to the cold weather.

More broadly, Chinese built chip stockpiles ahead of US trade restrictions kicking in which led to a drawdown in everyone else’s inventory/queue position at the foundry. Now demand has picked up everyone scrambling. Quite common in the chip cycle to get squeezes but does seem far more pronounced than in the past.

Usually it’s resolved by prices, but seems new consoles, increased use in autos etc. have created a bit of a perfect storm. And don’t forget those graphics cards repurposed for crypto mining. Not sure it’s something governments throwing their weight around can solve. They’ve just underinvested in capacity for this generation of chips.

Maybe consumer demand will taper when Covid restrictions ease and that will help things balance. Also worth remembering that car production overall is still down massively, 40% from pre-Covid levels in Germany and UK, that’s 3mn car per year there alone.
 

Jason71

Active Member
May 8, 2019
4,008
4,253
Shropshire
It seems to be a widespread global shortage of chips: The World Is Short of Computer Chips. Here’s Why

Don't think it's related to either JiT or the recent bad weather in parts of the US, as it seems to be hitting many other manufacturing areas as well.
I agree there is a widespread shortage of chips but there were reports that this particular issue was related to the Samsung Austin Texas factory shutting down due to the weather. and if Tesla were holding stock they would have been able to weather" it ( see what I did there) without a shutdown so if this is the case then the Just in Time nature of car production would also be a factor.
 
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GeorgeSymonds

Active Member
Moderator
Mar 16, 2018
1,866
1,570
UK
...nobody has mentioned Brexit or Covid. Makes a nice change

I get confused with these shutdown messages, somebody says they're shut for 2 weeks with staff not being paid for 4 days, some say 2 days. The MSX production line is producing then its not ready yet but soon will be. None of it really matters in the UK as we're the back of the queue for MSX, M3s are coming from China and there are no M3Ps due for a few months wherever they end up making them. You do get the feeling though that this quarters production and sales figures globally aren't going to be setting any records.

The chip shortage is bugging me, time to get a new graphics card and they're impossible to find due to the bitcoin miners. Nothing a 30% drop in the bitcoin price wouldn't fix, maybe Musk could solve the problem if it is that by slating the currency (obviously after selling at a profit)
 

Avendit

Active Member
Apr 18, 2019
1,077
707
EDI
The chip shortage is bugging me, time to get a new graphics card and they're impossible to find due to the bitcoin miners. Nothing a 30% drop in the bitcoin price wouldn't fix, maybe Musk could solve the problem if it is that by slating the currency (obviously after selling at a profit)

Agree, can't even get a second hand card for love nor (even slightly reasonable) money. Just tried to hook up a new 49" monitor to my old but very serviceable graphics card to find that although all my crummy little power sipping laptops can manage it, my main PC won't output at the 5k native resolution. So now I'm working from a manually defined 4100x1440 res, with black bars at either end :(. Finding a card that is noticeably faster, available and costs less than £1000 is apparently a niche that doesn't exist :(.

On the tesla side, I have seen some posts suggesting that they are taking the forced shutdown opportunity to tune the factory a bit, which will be nice for those receiving in the next couple of quarters.
 

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