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Tesla (TSLA) confirms chip shortage and logistics problems will slow growth in 2021

Tesla is running into some heavy supply chain challenges, which could affect its future output.

Ozzie Mejia

July 26, 2021 1:30 PM

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Demand for Tesla vehicles looks to be higher than it's ever been. However, the company may not be in a position to provide that level of supply. As noted via Monday's Q2 2021 earnings call transcript, Tesla noted that a supply shortage will likely affect how much the company will be able to deliver over the remainder of the year.

"Supply chain challenges, in particular global semiconductor shortages and port congestion, continued to be present in Q2," reads the Tesla Q2 2021 earnings call transcript. "The Tesla team, including supply chain, software development and our factories, worked extremely hard to keep production running as close to full capacity as possible. With global vehicle demand at record levels, component supply will have a strong influence on the rate of our delivery growth for the rest of this year."

What this means is that the continuing semiconductor shortage is threatening Tesla's potential output for 2021 and maybe beyond. The chip famine and silicon shortage has been threatening various technological sectors for a long time. It's the same shortage that got the attention of President Joe Biden earlier this year.

Today's earnings call transcript indicated that Tesla's total revenue grew 98 percent year-over-year in Q2 2021. However, this supply shortage stands to affect Tesla's potential sales going forward and there does not appear to be a solution at hand.

The full press release from today's Tesla earnings call transcript is available now. We'll have more on Tesla as the day goes on. Stay tuned to Shacknews for the latest updates.

Ozzie Mejia

Senior Editor

Ozzie has been playing video games since picking up his first NES controller at age 5. He has been into games ever since, only briefly stepping away during his college years. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but he’s also a huge sucker for anything with a good, compelling narrative behind it. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke?