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Tesla says chip shortage, port congestion, and blackouts are impacting production

Problems facing current U.S. production and distribution are compounding, according to Tesla's most recent Q3 2021 quarterly earnings report.

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The issues with chip shortage have affected a number of technology industries across the board over the course of years, but production is running into a set of new and unique issues on top that. Sea ports around the world are clogged due to never-before-seen shipping volume and power grids failing in major parts of the world. It’s a collection of factors that Tesla has attributed to trouble in manufacturing in its recent Q3 2021 quarterly results.

Tesla posted its Q3 2021 quarterly financial results on its investor relations website on October 20, 2021 alongside a presentation to go with it. It was in this presentation that Tesla detailed the number of issues that are affecting its global production lines.

Despite issues with chip shortages, port congestion, and electricity blackouts, Tesla (TSLA) stock continues to be in one of its strongest positions of the year.
Despite issues with chip shortages, port congestion, and electricity blackouts, Tesla (TSLA) stock continues to be in one of its strongest positions of the year.

To that end, Tesla claims it has ramped up efforts to produce alternative production and shipping methods to the ones currently in place. It promises to shift further production into not only Berlin, Germany, but also its new Gigafactory in Austin, Texas, which has become its official headquarters.

The shift in factory reliance likely won’t make the semiconductor famine go away or move shipping congestion on the coasts any quicker, but Tesla seems convinced that it can at least alleviate some of the pressure points of the production process with its planned efforts. It will remain to be seen if it can hold true on production builds of the Model Y before 2021 ends. Stay tuned as we continue to follow for further updates and information and check out further reveals from the Tesla Q3 quarterly financial results.

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

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