Lesson from Tesla on Managing Chip Shortages
There is a big lesson from Tesla here. The company was able to go back to software and quickly changed things to align with the available raw materials. As a result of that, it was able to manage the paralysis from the global chip shortages. That is adaptability at scale.
While global supply chain woes and the semiconductor shortage slammed the brakes on much of the auto industry last year, Tesla did something miraculous: It sold nearly twice as many vehicles as it did in 2020. The electric car company operated "in a different reality" than traditional carmakers, per The New York Times, due in part to its focus on self-reliance. Tesla was able to "conjure up critical components" and rework its software around what it had, signaling a potential power shift looming as cars become more digital.
