Listen: Tesla Quietly Cut Steering Component to Reallocate Chips Amid Shortage

Published: Feb. 10, 2022, 7 p.m.

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While nearly every automaker has struggled to maintain production after the pandemic-initiated chip shortage, there was one who stood out for having withstood the challenges more than effectively: Tesla.

Breaking from the trend of languishing production, Tesla announced in January that its 2021 deliveries were up by about 87 percent.

And according to CNBC, Tesla had a secret solution that it was using to hit these outsized production goals that is only now being revealed: the company reportedly took chips from one part of its vehicles and used them elsewhere where there was a more pressing need. And while other automakers have made these types of shifts, some analysts suggest it\\u2019s not been done quite this way before.

CNBC cites two anonymous Tesla employees who say the company decided to cut a steering component they considered \\u201credundant\\u201d in order to reuse the needed chips elsewhere. The chip is considered a backup for a more mechanical process used to steer; in this case, it\\u2019s an secondary electronic control unit that would be critical for the kind of self-driving that Tesla doesn\\u2019t offer now, but plans to in the future.

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