Tesla CEO Elon Musk, who has been supporting Ukraine in the Ukraine-Russia war, recently stated that inflation caused by the war has brought serious pressure on Tesla and SpaceX in terms of raw materials and logistics.
According to Reuters, Musk said in a tweet that the Ukrainian-Russian war has pushed the pricing of bulk materials to their highest leveld since 2008. For example, prices of aluminum used in chassis, palladium used in converters in motors, and nickel used in electric vehicle batteries have continued to soar recently, which also means Tesla will have to pass on price increase to consumers. However, Tesla and SpaceX have not officially commented on Musk's claims.
The report stated that the current spike in raw material prices has raised doubts about the economics of electric vehicles. At this stage, traditional automakers and suppliers are preparing to launch new cars in 2022 after alleviating the problems related to the chip shortage. In this regard, market analysts pointed out that, just like the current easing of semiconductor wafer shortages, the Ukrainian-Russian war has caused new disruptions to the supply of basic materials and led to worrying price spikes.
The report further cites analysts at Wells Fargo as saying that nickel, a key material used in batteries, will rise 130% in 2022, while cobalt, lithium and, aluminum prices will surge 16% to 88%. Faced with soaring raw material prices, Tesla last week raised the prices of its popular SUVs and sedans in China and the U.S. by $1,000. Rivian Automotive, another electric vehicle supplier, also pointed out that it will plan to cut its original production in half. In addition, not long ago, Japan's Toyota Motor also said that, due to supply chain problems, it is expected to carry out production reduction plans in the second quarter of 2022.
(Imageļ¼Flickr/Daniel Oberhaus CC BY 2.0)