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Musk says panic-buying of chips is like the rush on toilet paper

Last month, the consultant AlixPartners estimated automakers will lose about $110 billion of sales this year to the dearth of semiconductors, almost double an earlier projection.

Elon Musk Elon Musk
Elon Musk (REUTERS)

Elon Musk said the chip shortage is wreaking havoc on Tesla Inc.’s supply chain and blamed companies ordering more microcontrollers than they need, much like consumers hoarded toilet paper in the early days of the pandemic.

“Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it,” the chief executive officer tweeted Wednesday.

“Fear of running out is causing every company to overorder – like the toilet paper shortage, but at epic scale.”

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Last month, the consultant AlixPartners estimated automakers will lose about $110 billion of sales this year to the dearth of semiconductors, almost double an earlier projection.

Taiwan Semiconductor Manufacturing Co. said last month it plans to increase production of microcontroller units by 60% this year to help relieve supply-strained carmakers.

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