Tesla CEO and SpaceX company founder Elon Musk is worried high inflation will put pressure on raw materials and logistics.
In a tweet on the link between the Russia-Ukraine conflict and soaring commodity prices since 2008, Musk retweeted by asking about the prospects for inflation and noted that his company was also ‘not exempt’ from being hit by tempias.
For the record, the Russian attack on Ukraine has caused commodity prices such as metals for cars, aluminum for bodies up to car palladium and high -grade nickel for car batteries to soar.
Although western countries have not yet imposed restrictions on metal materials, it still affects the shipment of car parts suppliers from Russia and indirectly puts pressure on carmakers who are still struggling with chip shortages and high energy prices.
It is common knowledge that US consumer inflation data, driven by house, food and gas prices has soared to its highest level in 40 years prompting the Federal Reserve (Fed) to raise interest rates more aggressively.
Meanwhile, shares of Tesla closed 5% lower at $ 795.35 during the closing session on Friday.
Tesla last week raised the price of the Model Y SUV and Model 3 sedan by $ 1,000 each as well as several other Chinese -made models by 10,000 Yuan.
In addition, Tesla's rival, Rivian Automotive noted problems and constraints in the raw material supply chain could cause its company's production to be cut in half.
Toyota Motor Corp Japan also said they had to cut domestic production by 20% for April to June to ease pressure on suppliers struggling with issues of shortages of chips and other materials.