Elon Musk: Chip Shortage Was Much Like The Toilet Paper Fiasco

Elon Musk: Chip Shortage Was Much Like The Toilet Paper Fiasco

01/27/2022

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Posted on EVANNEX on January 27, 2022, by Matt Pressman

After missing-in-action on the last earnings call, Elon Musk was back to give his take on Tesla’s Q4 call yesterday. As always, he added quite a bit of color (and humor) to his analysis. Tesla’s “techno-king” had a lot to be proud of — especially in light of another crazy year for Team Earth.

The auto industry, as many are aware, was plagued by a significant chip shortage. According to Musk, “last year was chip hell,” it was nothing short of “chip drama central.” Even so, Tesla was “able to grow almost 90% while at least almost every other manufacturer contracted last year.”

So will the chip shortage finally abate? Musk seems to think so and made a pretty amusing analogy. He explained, “I think there’s some degree of the toilet paper problem as well, where, you know, there was a toilet paper shortage during COVID, and like, obviously, it wasn’t really, certainly, a tremendous enhanced need for ass wiping.”

He continues, “It’s just people panicked… and got every paper you could possibly wipe your ass with basically… So [it was] an odd choice for people to panic about… if [the] end of the world is coming, having toilet paper is the least of your problems.”

So much like the toilet paper fiasco in the consumer goods sector, in the auto industry, “I think we saw just a lot of companies over-order chips… [but] we are seeing alleviation.” In addition, “It’s not a long-term thing [anyhow] because there’s going to be — there’s a great amount of chip fabs being built, which is great.”

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