Elon Musk says Tesla, SpaceX see significant inflation risks as Ukraine-Russia war raises commodity costs

Tesla CEO Elon Musk stated on Sunday that U.S. electrical automobile maker and its rocket firm SpaceX are dealing with vital inflationary pressures in uncooked supplies and logistics.

Musk additionally requested concerning the inflation outlook on the tweet, saying his firm was “not alone” in retweeting an article that the Ukraine-Russia battle had pushed commodity costs to their highest degree since 2008.

Russia’s invasion of Ukraine has pushed up the costs of metals utilized in automobiles from physique aluminum to palladium and high-quality nickel in electrical car batteries, and drivers are more likely to pay the invoice. Though metals haven’t but been topic to Western sanctions, some shippers and auto components suppliers are avoiding Russian merchandise, growing strain on automakers who’re already affected by chip shortages and better power costs.

Pushed by home, meals and gasoline costs, U.S. shopper inflation hit its sharpest peak in 4 a long time, probably reinforcing the rationale for the Federal Reserve’s fee hike.

Shares of Tesla, which closed 5 % on Friday at $ 795.35 (about 60,870 rubles), have misplaced about 25 % thus far.

Final week, the electrical automobile producer raised the costs of its US Mannequin Y SUVs and Mannequin 3 Lengthy Vary sedans by $ 1,000 (about Rs 76,510) and the costs of some Chinese language-made Mannequin 3 and Mannequin Y automobiles by $ 10,000 (about Rs 1.2 billion). lakh). )).

U.S. electrical car maker Rivian stated final week that offer chain issues may halve its deliberate manufacturing, citing rising uncooked materials costs and provide chain constraints. Japan’s Toyota stated it could minimize its home manufacturing by as a lot as 20 % in April-June to ease strain from suppliers in want of chips and different components.

Tesla and SpaceX didn’t instantly reply to Reuters’ requests for feedback late Sunday.

© Thomson Reuters 2022

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