The boss of Tesla expects a drop in commodity prices in the coming months, a sign, according to him, that “we have passed the peak of inflation”.
Tesla CEO Elon Musk sees signs that the global economy has “passed peak inflation”. Speaking at the electric vehicle maker’s annual shareholders meeting on Thursday, the billionaire said the prices of the company’s commodities and components will tend to fall over the next six months. He also reiterated his earlier comments that he expects a mild recession that could last 18 months.
“The trend is down, suggesting we’re past peak inflation,” the billionaire said at Tesla’s Austin headquarters and factory. “I think inflation will fall quickly” at some point in the future, he added.
Central banks have embarked on a course of tightening monetary policy, with inflation putting pressure on consumers and corporate earnings. In the United States, consumer prices rose by 9.1% in June compared to the previous year.
“We sort of have a sense of where prices are headed over time,” Musk said, citing Tesla’s need to purchase raw materials often months in advance of their use.
While Tesla has a holistic view of production costs and consumer health, Elon Musk warned that making macroeconomic predictions was “a recipe for disaster” and said his comments amounted to a “assumption” and at one “total speculation”. The CEO also warned that trends could change.
About the future cybertruck of Tesla’s ‘Blade Runner’ Movie-Inspired Pickup, Musk Warned: Its Price Could Be impacted by inflation. The vehicle was unveiled in 2019, and when the company launched reservations, Musk announced a starting price of $39,900. “I hate to give bad news. But there was no way to anticipate inflation or the various issues we had,” he said, referring to delays in the production of the vehicle. It was originally to be put on the roads in 2022.