Elon Musk: Tesla Can Lower Prices 'if Inflation Calms Down'
16 July 2022 - 12:07AM
Dow Jones News
By Will Feuer
Tesla Inc. can lower prices for its cars "if inflation calms
down," Chief Executive Elon Musk said.
Mr. Musk's comments, made Friday in a tweet, come a month after
Tesla last raised prices on some of its cars by as much as $6,000.
Before that, Tesla raised prices in March, soon after Mr. Musk
warned in a tweet that Tesla and his Space Exploration Technologies
Corp., or SpaceX, "are seeing significant recent inflation pressure
in raw materials & logistics."
Mr. Musk in April said that prices take into account monthslong
wait lists for Tesla cars as well as expectations that costs will
continue to rise.
"It may seem like maybe we're being unreasonable about
increasing the prices of our vehicles given that we had record
profitability this quarter," Mr. Musk said on the company's
quarterly earnings call. "Our prices of vehicles ordered now are
really anticipating supplier and logistics cost growth that we're
aware of and believe will happen over the next six to 12
months."
Mr. Musk at the time said that if the company's expected cost
increases didn't materialize, Tesla may slightly reduce prices.
Between 10% and 15% of Tesla's cost structure is exposed to
swings in raw-materials prices, finance chief Zachary Kirkhorn said
in April.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
July 15, 2022 09:52 ET (13:52 GMT)
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