Tesla removed one of the two electronic control units typically included in the steering racks of some China-made Model 3 and Model Y cars to deal with a chip shortage, according to CNBC.
(Image: Screenshot of Tesla video.)
Tesla removed one of the two electronic control units typically included in the steering racks of some Chinese-made Model 3 and Model Y cars to deal with a chip shortage, CNBC reported today.
The report, citing two employees and internal correspondence seen by CNBC, said it was because Tesla was under pressure to meet fourth-quarter sales targets while dealing with a widespread semiconductor shortage.
Tesla did not disclose the exclusion, which has affected tens of thousands of vehicles shipped to customers in China, Australia, the United Kingdom, Germany and other parts of Europe, according to the report.
It's unclear whether Tesla will make similar changes to cars built in or shipped to the US, the report said.
Tesla removed the component because engineers felt it was redundant and was primarily installed as a backup, according to the report.
Most cars with a single electronic control unit were originally offered to Chinese customers, where Full Self-Driving (FSD) is not seeing significant uptake. Just over 1 percent of all Tesla customers in China opt for the premium driver assistance package when placing an order for a new car, CNBC said, citing internal communications.
Benefiting from rising Giga Shanghai production and deliveries, Tesla's revenue in China reached $13.844 billion in 2021, up 107.8 percent year-on-year, according to the company's 10-K filing with the US Securities and Exchange Commission (SEC).
Tesla China's sales reached 473,078 units last year, including exports to overseas markets, accounting for 51.7 percent of its 936,000 deliveries worldwide, according to data from the China Passenger Car Association (CPCA).
In 2021, the Tesla Model Y sold 169,853 units in China, making it the best-selling new energy SUV in the country.
With 150,890 units sold in 2021, the Model 3 was the third best-selling new energy sedan in China, behind the Hongguang Mini EV with 395,451 units and the BYD Qin with 187,227 units.
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