Tesla (TSLA) - Get Tesla Inc Report CEO Elon Musk has said that he's not worried about the ongoing semiconductor shortage. While attending a tech event on Friday, Musk said the chip shortage is a “short-term” problem.
"Musk's optimism comes from the production expected from new semiconductor plants that are planned or under construction," writes TheStreet's Tony Owusu.
"There's a lot of chip fabrication plants that are being built," said Musk. "I think we will have a good capacity for providing chips by next year."
Earlier on Thursday, the White House invited big names in the tech and auto industry to discuss the global chip shortage.
Companies such as Ford (F) - Get Ford Motor Company Report and General Motors (GM) - Get General Motors Company (GM) Report have been forced to cut down their production due to the global semiconductor chip shortage.
A recent study by AlixPartners suggests that in 2021, the semiconductor chip shortage would cost the global auto industry $210 billion in revenue.
“Of course, everyone had hoped that the chip crisis would have abated more by now, but unfortunate events such as the COVID-19 lockdowns in Malaysia and continued problems elsewhere have exacerbated things,” said AlixPartners' Mark Wakefield. “Also, chips are just one of a multitude of extraordinary disruptions the industry is facing—including everything from resin and steel shortages to labor shortages. There’s no room for error for automakers and suppliers right now; they need to calculate every alternative and make sure they’re undertaking only the best options.”