October 3, 2022
Elon Musk Says Tesla, SpaceX See Significant Inflation Risk As Ukraine-Russia War Raises Commodity Costs

Tesla CEO Elon Musk said on Sunday that the US electric car maker and his rocket company SpaceX are facing significant inflationary pressures in raw materials and logistics.

Musk also asked about the inflation rate outlook in a tweet, saying his companies “are not alone”, retweeting an article that said the Ukraine-Russia conflict sent commodity prices to their highest level since 2008. have been given.

Russia’s invasion of Ukraine has raised the prices of metals used in cars, from aluminum in bodywork to palladium in catalytic converters to high-grade nickel in electric vehicle batteries, and is likely to set drivers up for bills. While the metals have not yet been a target of Western sanctions, some shippers and auto-parts suppliers shy away from Russian goods, putting more pressure on carmakers already grappling with chip shortages and high energy prices.

Rising prices of housing, food and gas, the sharpest rise in US consumer inflation seen in the past four decades, could strengthen the case for an interest rate hike by the Federal Reserve.

Tesla’s stock, which closed at $ 795.35 (about Rs 60,870 around Rs 60,870), down 5 per cent on Friday, has declined nearly 25 per cent year-on-year.

The electric-carmaker last week slashed the prices of its US Model Y SUV and Model 3 long range sedan by $1,000 (approximately Rs 76,510) and some China-made Model 3 and Model Y vehicles by CNY 10,000 (approximately Rs 1.2 lakh). increased. ,

US electric vehicle maker Rivian said last week that supply-chain issues halved its planned production, citing rising raw material prices and supply chain bottlenecks. Japan’s Toyota said it would cut domestic production by up to 20 per cent for April-June to ease pressure on suppliers struggling with shortages of chips and other parts.

Tesla and SpaceX did not immediately respond to Reuters requests for comment late Sunday.

© Thomson Reuters 2022

Leave a Reply

Your email address will not be published.