Musk: "Tesla and SpaceX Face Significant Inflationary Pressures"

Elon Musk Tesla CEO [Photo by AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Elon Musk, CEO of Tesla, revealed that Tesla and SpaceX are facing significant inflationary pressure risks in terms of raw materials and logistics.

On the 13th (local time), Musk posted an article titled "Raw material prices hit the highest level since 2008 due to concerns over Russian supply" on his Twitter, adding, "We are not alone." This tweet is interpreted as indicating that the rise in raw material prices could lead to an increase in automobile prices.

Tesla has already raised product prices considering the increase in raw material costs. On the 9th, Tesla raised the prices of the Model Y sport utility vehicle (SUV) and Model 3 Long Range sedan sold in the U.S. by $1,000 (about 1.24 million KRW) each, and also increased the prices of the same models produced in China by 10,000 yuan (about 1.95 million KRW) each. In South Korea, it announced on the 14th that it would raise prices by up to 2 million KRW for the Model 3 Long Range and Model Y.

Last month, the Russian invasion of Ukraine caused a supply shock in the raw materials market, significantly raising prices of raw materials used in automobile production such as aluminum, palladium, and nickel. The supply chain issues in the automotive industry, which had already experienced semiconductor shortages due to COVID-19, are worsening due to Russia's airstrikes on Ukraine.

American electric vehicle company Rivian recently announced that it may reduce its planned production volume by half due to rising raw material prices and supply chain constraints. Japanese automaker Toyota also stated that it may reduce domestic production in Japan by up to 20% from April to June due to shortages of semiconductors and other parts.

This content was produced with the assistance of AI translation services.