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Elon Musk Says Tesla, Spacex Are Seeing Significant Inflationary Pressure – Confirms He Won’t Sell Crypto Cryptocurrency

Elon Musk Says Tesla and Spacex See Significant Inflation Pressure — Confirms He Won't Sell Crypto

Tesla and Spacex CEO Elon Musk has revealed his two companies are under significant inflationary pressure in raw materials and logistics. He advised people to own physical assets when inflation is high, but stressed that he would not sell his cryptocurrencies: bitcoin, ether and dogecoin.

Elon Musk talks about high inflation

Tesla and Spacex CEO Elon Musk addressed high inflation in a series of tweets that began Sunday evening. He started by asking his 7.7 million Twitter followers, “What do you think about the likely rate of inflation over the next few years?” Musk also revealed that his companies, Tesla and Spacex, were under significant inflationary pressure in raw materials and logistics.

Elon Musk Says Tesla, Spacex See Significant Inflation Pressure – Confirms He Won't Sell Crypto

The Spacex boss noted that other companies are seeing a similar trend. He referred to an article published by the Financial Times earlier this month indicating that global commodity prices are on track for the biggest weekly rally in more than 50 years, natural gas prices in Europe reaching a new record.

Dominic O’Kane, an analyst at global investment bank JPMorgan, was quoted by the publication as saying: “Events in Russia and Ukraine are triggering exceptional moves in commodity prices, which could have structural implications on the long-term offer. . . but we also believe there are credible threats of demand destruction as commodity prices melt.

Many people responded to Musk’s tweets about inflation. Orcam Group Founder Cullen Roche detailed: “The probability of inflation of 10% and above is extremely high for much of 2022. Interestingly, this also increases the risk of deflation in 2023 and 2024, as this increases the risk that the Fed will make a policy mistake and/or prices will correct by crashing.

Last week, Charlie Bilello, founder of Compound Capital Advisors, noted: “The US inflation rate is rising to 7.9%, its highest level since 1982. Core inflation (excluding food/energy) is rising at 6.4%, also the highest we’ve seen. since 1982.”

Inflation Tips and Elon Musk’s Cryptocurrencies

Among those who responded to Musk was Microstrategy pro-bitcoin CEO Michael Saylor. He tweeted:

USD consumer inflation will continue at historic highs and asset inflation will continue at double the rate of consumer inflation. Weaker currencies will crash, and the flight of capital from cash, debt, and valuable stocks to scarce commodities like bitcoin will intensify.

Musk was not surprised by Saylor’s conclusion. “It’s not entirely unforeseeable that you would come to that conclusion,” he replied. The Spacex boss went on to say that as a general rule, “it’s usually better to own physical assets like a house or shares in companies that you think make good products than dollars when inflation is high. “.

Elon Musk Says Tesla, Spacex See Significant Inflation Pressure – Confirms He Won't Sell Crypto

Technoking Tesla further confirmed that he still owns three cryptocurrencies and will not sell them. “I still own and will not sell my bitcoin, ethereum or doge,” Musk wrote.

He first revealed in June last year that he personally owned BTC, ETH, and DOGE. He also said that Spacex only owns BTC. Regarding its electric car business, Tesla told the U.S. Securities and Exchange Commission (SEC) in a filing that the fair market value of its bitcoin holdings as of December 31 was $1.99 billion. .

On Monday, Musk also tweeted challenging Russian President Vladamir Putin to “single combat.” He said “the stakes are Ukraine”. He followed up with another tweet less than an hour later, asking the Kremlin: “Are you okay with this fight?

The CEO of Spacex sent a few shipments of Starlink equipment to Ukraine. “Starlink keeps our cities connected and emergency services save lives,” said Mykhailo Fedorov, Deputy Prime Minister of Ukraine.

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What do you think of Elon Musk’s comments? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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