Musk says Tesla, SpaceX see significant inflation risks – Reuters

March 14, 2022 by No Comments

SpaceX owner and Tesla CEO Elon Musk speaks during a conversation with legendary game designer Todd Howard (not pictured) at the E3 gaming convention in Los Angeles, California, U.S., June 13, 2019. REUTERS/Mike Blake

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March 13 (Reuters) – Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk said on Sunday the U.S. electric carmaker and his rocket company SpaceX are facing significant inflationary pressure in raw materials and logistics.

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

Russia’s invasion of Ukraine has been ramping up the prices of metals used in cars, from aluminum in the bodywork to palladium in catalytic converters to the high-grade nickel in electric vehicle batteries, and drivers are likely to foot the bill.

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While metals have not been the target of Western sanctions as yet, some shippers and auto-parts suppliers are steering clear of Russian goods, putting more pressure on carmakers already reeling from a chip shortage and higher energy prices. read more

Escalated by housing, food, and gas prices, the U.S. consumer inflation saw its steepest spike in the last four decades, likely cementing the case for an interest rate hike by the Federal Reserve. read more

Tesla’s shares, which closed 5% lower at $795.35 on Friday, have lost about 25% …….

Source: https://www.reuters.com/technology/musk-says-tesla-spacex-facing-significant-inflation-pressure-2022-03-14/

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