Elon Musk says Tesla and SpaceX are facing inflation pressure in raw materials and logistics

Elon Musk has said that Tesla and SpaceX are facing inflation pressure in raw materials and logistics.

The South Africa-born mogul asked about his followers’ thoughts on inflation in a tweet, saying ”we are not alone.”

Musk, the head of Tesla and SpaceX, also retweeted an article saying the Ukraine-Russia conflict sent commodity prices to their highest levels since 2008.

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The Russian invasion of Ukraine and Western sanctions, which include a US ban on Russian oil imports, are raising prices of energy and other key commodities like wheat, fertilisers, and metals to surge.

They have also ramped up the prices of metals used in cars, from aluminum in the bodywork to palladium in catalytic converters to the high-grade nickel in electric vehicle batteries, and drivers are likely to foot the bill.

Trading floors continue to be awash with uncertainty as Russia’s war in Ukraine rages, with comments from Vladimir Putin that there were “positive developments” in talks with Kyiv unable to provide much support.

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SpaceX’s Starlink satellite broadband service was activated in Ukraine last week after Kyiv digital minister Mykhailo Fedorov urged Musk to provide the embattled country with stations days after it was invaded by neighboring Russia.

The service operates a constellation of more than 2,000 satellites that aim to provide internet access across the planet.

Tesla’s shares, which closed 5 per cent lower at $795.35 on Friday, have lost about 25 per cent year-to-date.

The electric-car maker last week raised prices of its US Model Y SUVs and Model 3 Long Range sedans by $1,000 each and some China-made Model 3 and Model Y vehicles by 10,000 yuan ($1,582.40).

Last week, electric vehicle maker Rivian Automotive Inc said supply-chain issues could cut its planned production in half, citing soaring raw material prices and supply chain constraints.

(With inputs from agencies)