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The supply chain is in for a major overhaul as longtime suppliers look to maintain their positions in the EV era, executives said at the Automotive News Congress.
CEO Elon Musk has said Tesla could stop taking orders as demand for some of its vehicles exceeds production "to a ridiculous degree."
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The reversal is a victory for suppliers, which have watched their top and bottom lines bleed amid supply chain volatility while automakers haul in profits.
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A short-term slowdown in semiconductor-related cuts should not be taken as a sign the microchip shortage is ending, AutoForecast Solutions warns.
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