Elon Musk, chief executive of Tesla (795.35, -42.95, -5.12%) and SpaceX, said on Sunday that his two companies face huge inflationary pressures on raw materials and logistics.
Musk also asked about the outlook for inflation on Twitter (33, -1.12, -3.28%) and said his company is “not alone” in facing inflationary pressures, retweeting an article that said Russia The conflict in Ukraine has pushed commodity prices to their highest levels since 2008.
The Russian-Ukrainian conflict is pushing up the price of metals used in cars, from aluminum in car bodies to palladium in catalytic converters to high-grade nickel in electric vehicle batteries, for which owners are likely to pay.
Tesla hastily raised prices for some models in the U.S. and China last week. This is Tesla’s first price hike this year after a string of price hikes in 2021 due to chip shortages and supply chain disruption.
