Tesla has fared better than most automakers in managing supply chain issues by using less scarce chips and quickly re-writing software

Tesla Inc decided to remove one of the two electronic control units included in the steering racks of some made-in-China Model 3 and Model Y cars to meet fourth-quarter sales goals while coping with global chip shortage, CNBC reported on Monday.

The electric-car maker did not disclose the exclusion, which already affected tens of thousands of vehicles being shipped to customers in China, Australia, the United Kingdom, Germany and other parts of Europe, the report said, citing two employees and an internal correspondence.

Tesla decided against notifying customers as the part is considered a redundant backup and was not needed for the level 2 driver-assistance features, the report said, adding it was not clear if Tesla would make similar changes to the cars built in or shipped to the United States.

According to these anonymous Tesla employees, there was debate internally about whether or not to disclose the lack of a redundant steering wheel system backup to customers. Having the dual electronic control system is seen as necessary for Tesla’s Full Self-Driving system. Not having a complete dual-control steering wheel system can still allow for ‘Level 2’ Autopilot and FSD.

Unnamed employees told CNBC if a major FSD update were released, owners with FSD would require a retrofit from Tesla at a service centre, to restore to a dual-control steering system.

Tesla has fared better than most automakers in managing supply chain issues by using less scarce chips and quickly re-writing software.

It expects chip shortages to last through this year before easing next year. Chief Executive Elon Musk told an earnings call last month the shortage was not a long-term issue, with factories increasing capacity and automakers guilty of panic buying of chips which slowed the supply chain.