Chip shortage will be solved by 2022: Elon Musk

San Francisco: Tesla CEO Elon Musk has disclosed he is confident that the ongoing chip shortage will be solved by 2022, despite others having reservations.

The pandemic has resulted in an increased demand for many electronics and computers that the supply chain couldn't handle, especially the semiconductor industry, reports Electrek.

This microchip shortage, in turn, affected the automotive industry, which has increasingly become a big consumer of microchips.

The auto-tech website previously released a deep-dive report on how the chip shortage is affecting electric vehicle production as several automakers had to halt production until chip supply could catch up.

Pat Gelsinger, CEO of Intel recently said that it could take a "couple of years" for the industry to catch up to the surging demand.

Earlier this year, Musk confirmed that it is affecting Tesla, but he believes it's not a "long-term issue".

When discussing Tesla's performance this quarter, Musk said that Tesla's current biggest challenge is the supply chain issue, especially "microcontroller chips".

At a tech conference in Italy, Musk again commented on the timeline and claimed that it should be fixed "by next year" with new factories coming up.

"There's a lot of chip fabrication plants that are being built and I think we will have good capacity by next year," Musk said.

The CEO's outlook is more optimistic than several other industry leaders who see the issue lasting up to 2023, the report said.