Elon Musk answered a question from one of his followers about Tesla’s plans to lower the price of cars that had previously been raised.
“If inflation subsides, we can lower the price of cars,” Musk said in a tweet.
If inflation calms down, we can lower prices for cars
— Elon Musk (@elonmusk) July 15, 2022
In recent months, Tesla has increased the electric vehicles they produce due to rising prices for raw materials from aluminum to lithium. These raw materials are used for the production of cars and batteries.
Meanwhile, almost the entire automotive industry is faced with supply chain problems such as chips and spare parts that create obstacles in car production. Several electric vehicle manufacturers have revised their production targets due to the issue.
On the other hand, the Shanghai Giga, which is Tesla’s mainstay for the Chinese and export markets, has stopped production due to the lockdown due to Covid-19.
Musk, previously warned about the risk of a recession and said he had a “very bad feeling” about the global economy.
Inflation in the US hit 9.1% to a nearly 41-year high in June, as energy and food costs remained high. Inflation is also forcing electric vehicle manufacturers to cut costs and change their hiring plans.