The Impact of the CrowdStrike Outage
Tesla was among the many companies affected by the recent IT outage caused by a defective software update from CrowdStrike. Musk confirmed this in a series of posts on the social platform X, stating that the outage “gave a seizure to the automotive supply chain.” The extent of the impact on Tesla’s operations remains unclear, but reports suggest that two of the automaker’s production lines were shut down early Friday morning. The company has not yet disclosed whether these lines are back in operation.
The Broader Implications for the Automotive Industry
Despite the disruption caused by the CrowdStrike outage, Arun Kumar, a partner and managing director at AlixPartners, suggests that the impact on the automotive industry is minor compared to other recent disruptions, such as the CDK Global cyberattack and the ongoing challenges of the COVID era. However, the incident raises important questions about the industry’s preparedness for such events.
According to Rockwell Automation’s 2024 State of Smart Manufacturing Report, cybersecurity is a top concern for automotive industry leaders worldwide. Yet, Kumar argues that many top executives are not concerned enough, with many chief security officers still reporting to chief information officers rather than CEOs.
The incident underscores the need for robust internal controls for security while keeping pace with rapid innovation. Balancing these two aspects, Kumar suggests, is the biggest challenge facing automakers and suppliers alike.
