Elon Musk, the CEO of Tesla Inc (TSLA.O), warned on Sunday that the American electric carmaker and his rocket company SpaceX are under severe Inflation 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,” retweeting 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.
Rivian Automotive Inc (RIVN.O), 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. Toyota Motor Corp (7203.T) 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.
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