Inflation and supply chain headwinds have wreaked havoc in the automotive industry in recent months, and Tesla hasn’t been immune to its effects — resulting in numerous price increases over the first half of the year.
Tesla CEO @Elon Musk tweeted on Friday that Tesla could reduce the price of its cars, if the high rate of inflation would decrease.
In the tweet, @Musk said, “If inflation calms down, we can lower prices for cars.”
If inflation calms down, we can lower prices for cars
— Elon Musk (@elonmusk) July 15, 2022
The tweet came in response to another user who asked if Musk and Tesla had plans to drop prices again after “pandemic or supply chain matters.”
Tesla has raised prices on its cars throughout the world in the past several months, at times by several thousands of dollars at a time.
In March, Musk said that both Tesla and SpaceX were experiencing “significant inflation pressure in raw materials and logistics.”
Tesla has not been the only automaker affected by inflation, however.
Last month, Ford CFO John Lawler said that inflation had erased Mustang Mach-E profits, although he also added that it hadn’t affected demand thus far.
Additionally, inflation is affecting some automakers on Wall Street.
Fellow electric vehicle (EV) automaker Polestar saw its shares drop by about 25 percent, just weeks after going public on Nasdaq through a SPAC merger.
