Dive Brief:
Tesla was affected by the massive IT outage sparked by CrowdStrike’s software update last week, CEO Elon Musk confirmed Friday in a series of posts on the social platform X.
In response to an X post by Microsoft CEO Satya Nadella, Musk said the outage “gave a shock to the automotive supply chain.”
Musk said CrowdStrike has been deleted from all of the company’s systems. Tesla has not responded to a request for more information about how its operations were impacted by the outage, but Business Insider reported that the automaker shut down two of its production lines early Friday morning. The manufacturer has not disclosed if the lines are back up and running.
Dive Insight:
Windows computer systems crashed worldwide Friday following CrowdStrike’s defective software update. The issue, which affected the company’s Falcon cybersecurity platform, caused massive disruptions of critical functions across multiple industries, Cybersecurity Dive reported.
But compared to last month’s CDK Global cyberattack that affected sales, the impact of the CrowdStrike outage appears to be minor for the automotive industry, said Arun Kumar, partner and managing director in the automotive and industrial practice at AlixPartners.
“I’m sure that some suppliers were impacted by [the IT outage],” Kumar said, but noted it pales in comparison to COVID-era disruptions and even the CDK cyberattack. Additionally, he noted the firm’s clients have not yet reported any major disruptions.
Rockwell Automation’s 2024 State of Smart Manufacturing Report finds that cybersecurity is the biggest concern for automotive industry leaders worldwide. Yet with the growing market for connected cars and software-defined vehicles, top executives aren’t concerned enough, Kumar argued, referring to how many chief security officers still report to chief information officers, rather than to CEOs.
“I think that level of visibility and rigor has not gone all the way to the top,” he said. “We believe that we still have a long way to go in making sure that we’re truly protected.”
Kumar said the broader question should be around what quality-control mechanisms are in place to avoid such situations in the future, both internally and externally. Meanwhile, many U.S. OEMs are sprinting to keep up with the rapid pace of innovation, which can lead to security lapses in an effort to gain a competitive edge.
It’s about finding balance between robust internal controls for security and keeping up with the competition, Kumar said.
“It’s the biggest challenge for a lot of the manufacturers, and suppliers, too.”
