Tesla Inc. CEO Elon Musk said on Sunday that his company and his rocket company, SpaceX, are under significant inflationary pressure in raw materials and logistics.
Musk also asked about the prognosis for inflation rates in a tweet, noting that his companies "are not alone," re-tweeting an article claiming that the Ukraine-Russia conflict had pushed commodity prices to their highest levels since 2008.
The price of metals used in automobiles has risen as a result of Russia's invasion of Ukraine, from aluminium in bodywork to palladium in catalytic converters to high-grade nickel in electric vehicle batteries, and drivers are set to foot the tab. While metals have so far escaped Western sanctions, some shippers and auto-parts suppliers are avoiding Russian goods, adding to the strain on automakers who are already dealing with a chip scarcity and rising energy costs.
Consumer inflation in the United States reached its highest level in four decades, owing to rising housing, food, and petrol prices, bolstering the case for the Federal Reserve to raise interest rates.
Tesla's stock has lost roughly 25% of its value year to date, closing 5% down at $795.35 on Friday.
Last week, Tesla raised the prices of its Model Y SUVs and Model 3 Long Range sedans in the United States by $1,000 each, as well as some Model 3 and Model Y vehicles built in China by 10,000 yuan ($1,582.40).
Rivian Automotive Inc, a U.S. electric vehicle manufacturer, said last week that supply-chain concerns could slash its planned output in half, citing rising raw material prices and supply-chain bottlenecks as reasons. Toyota Motor Corp. of Japan said it would cut domestic output by up to 20% in April-June to relieve pressure on suppliers dealing with chip and other part shortages.
Late on Sunday, Tesla and SpaceX did not immediately answer to Reuters' requests for comment.