Elon Musk says SpaceX, Tesla facing ‘significant’ inflationary pressure

SpaceX and Tesla CEO Elon Musk revealed in a Twitter thread that the two companies are facing “significant recent inflation pressure in raw materials and logistics. “

Musk’s Sunday tweet comes as the consumer price index rose 7.9% in February from a year ago, marking the fastest increase since January 1982, when inflation hit 8.4%.

The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 0.8% in the one-month period from January. According to the New York Federal Reserve’s Survey of Consumer Expectations, the median expectation is that the inflation rate will be up 6% one year from now, matching an 11-year-high recorded in November.

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TSLA TESLA INC. 766.37 -28.98 -3.64%

Russia’s invasion of Ukraine has also exacerbated the situation, with prices for commodities like metals climbing toward record highs.

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In a separate tweet, Musk advised his 77.8 million Twitter followers to own “physical things like a home or stock in companies you think make good products” rather than dollars when inflation is high.

The billionaire, who has been a proponent of cryptocurrencies, added that he still owns and will not sell his holdings in Bitcoin, Ethereum and Dogecoin.

Musk has a net worth of $ 211.9 billion, per real-time tracking by Forbes.

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An analysis by Moody’s Analytics senior economist Ryan Sweet found that skyrocketing inflation rates are costing the average American household $ 296.45 in extra expenses.

Ticker Security Cargo Change Change%
RIVN RIVIAN AUTOMOTIVE INC. 35.83 -2.22 -5.83%
RBI reach reach reach reach
PZZA PAPA JOHN’S INTERNATIONAL INC. 96.88 +2.02 + 2.13%
WING WINGSTOP INC 116.90 -6.15 -5.00%
DLTR DOLLAR TREE INC. 151.08 +4.06 + 2.76%

Companies that have been forced to take action to combat inflation over the past several months include Rivian, Burger King, Domino’s Pizza, Little Caesar’s, WingStop, Kroger, Dollar Tree and more.

Fox Business’ Megan Henney contributed to this report.

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