Luxury electric carmaker Tesla is raising its prices‚ the second time this year. The company said that the cost of the Model 3 in the United States now stands at $46‚990‚ an increase of nearly $1‚000. The price increase comes on the heels of Musk's earlier tweet about the effects of inflation on the company's supply chain. The CEO of SpaceX‚ which is involved in space exploration‚ said that while companies are not alone in facing the high cost of raw materials and logistics‚ he has concerns about the rising price of aluminum. While Tesla is not commenting on the price increase‚ it has raised its prices in the US and China on Tuesday. The increase in prices is a reaction to the recent tweet from Elon Musk about the impact of inflation on his company. On Monday‚ the Tesla chief executive tweeted about recent inflationary pressures on raw materials and logistics. While he didn't elaborate‚ he linked to an article on the rise in commodity prices following the Russian invasion of Ukraine. While the company has not commented on the new price hikes‚ the company has previously hinted that higher prices are likely to lead to lower sales.
On Monday‚ Musk tweeted about rising costs in the US and China. The prices of nickel have skyrocketed this year due to fears of a Russian influx of uranium‚ a key component in electric vehicle manufacturing. As a result‚ he has raised the prices of all his models‚ resulting in an overall rise of about $575.
What are your thoughts about probable inflation rate over next few years? — Elon Musk (@elonmusk) March 13, 2022
In a low interest rate world, any asset that can be speculated on, will see accelerating inflation when there is increasing demand and/or hoarding for supply protection. When the uncertainty is diminished or ends, the shorts come in and the market normalizes https://t.co/XFjrJTfiEp — Mark Cuban (@mcuban) March 14, 2022
Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics — Elon Musk (@elonmusk) March 14, 2022
I hereby challenge
to single combat
Stakes are Україна — Elon Musk (@elonmusk) March 14, 2022
As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw. — Elon Musk (@elonmusk) March 14, 2022
USD consumer inflation will continue near all time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like #bitcoin will intensify. — Michael Saylor⚡️ (@saylor) March 14, 2022