Musk: The war has caused a surge in raw materials, and the company is facing huge inflationary pressures

The Ukrainian-Russian war has always supported Ukraine, Tesla CEO Elon Musk (Elon Musk) recently said that the inflation caused by the war has put Tesla and SpaceX’s raw materials and logistics under severe pressure.

According to Reuters, Musk tweeted that the Ukrainian-Russian war has pushed commodity prices to their highest since 2008. He cites aluminum for cars, palladium for motor converters, and nickel for electric vehicle batteries, whose prices have continued to soar, making it imperative for Tesla products to pass on higher costs to consumers. Tesla and SpaceX have yet to respond to Musk’s remarks.

Soaring raw material prices have sparked market doubts about the economics of electric vehicles. After traditional automakers and suppliers eased the chip shortage, they are preparing to launch new cars in 2022. Market analysts pointed out that, just like the easing shortage of semiconductor chips, Ukraine The Russian war has caused new disruptions to the supply of basic materials and led to worrying price spikes.

The report quoted analysts at Wells Fargo Bank as saying that the price of nickel, a key battery material, has risen 130% this year, while the prices of cobalt, lithium and aluminum have soared 16% to 88%. Tesla last week raised prices for its most popular SUVs and sedans in China and the U.S. by $1,000, while fellow EV maker Rivian Automotive also noted plans to cut production in half. Not long ago, Japan’s Toyota Motor also said it would cut production in the second quarter due to supply chain problems.

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