Elon Musk Says Inflation Is Bad

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Elon Musk Says Inflation Is Bad

Elon Musk Says Inflation Is Bad

Tesla chief executive Elon Musk said inflation is bad and even worse than what is reported. Inflation is currently at a 40-year high at 8.5 percent due to Russia's invasion that has entered the third month in a row. Energy prices are up across Europe.

Musk said while replying to a question of an analyst at the Q1 earnings call. He was asked how the company is planning to cope with the price rise while focusing on the goal of bringing EVs to the masses and making people rely less on fossil fuels.

He said Tesla is working on making the EVs affordable and lamented that the pricing part can be a real challenge for them amid shifting macroeconomic conditions.

He added that the inflation may continue throughout 2022 and their suppliers are now requesting a hike in the costs of parts to about 20 or 30 percent. However, Tesla is able to keep the cost down temporarily as contracts with the suppliers have been locked. The cost may increase after the contract ends.

Tesla cars have become slightly expensive in the United States and China lately and analysts tried to learn from Musk whether further price hike is on the card soon.

The CEO confirmed no price hike is on the card in the short run and the current pricing is worththe profitable growth of the company. The current price covers are even for the cars that would be delivered in the coming months to about a year.

However, Musk wrapped the answer by saying the macroeconomic environment is not under the control of the company.

Tesla is currently working on a humanoid robot named Optimus that is believed to be launched in 2023. Musk said in the earnings call that the robot would be more valuable than Tesla in the future. He looked highly optimistic about the project and said it is mainly focused in bringing down the labor costs.

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