In a recent set of Twitter posts, Elon Musk noted that Tesla commodity prices are trending down. This bodes well for Tesla, and it supports the CEO’s previous comments about inflation during the company’s Q2 2022 earnings call last week.
During the second quarter earnings call, Musk noted that if Tesla sees the inflation rate declining, then the company would not need to increase its car prices. Musk even noted that it’s possible that there could be a slight decrease in vehicle prices instead.
“If I were to guess, and I would take this with a grain of salt, I think inflation will decline toward the end of this year,” Musk said during the Q2 earnings call.
Musk reiterated these sentiments on Twitter recently, noting that “inflation might be trending down.” In a follow-up tweet, Musk added that “more Tesla commodity prices are trending down than up” for what it’s worth. When asked if Tesla would be adjusting its vehicle prices again, Musk commented that it’s “too early to say for sure.”
This was not the first time that Musk commented on inflation and how it could affect Tesla’s car prices. Earlier this month, the CEO was asked if Tesla had any plans to reduce the price of its vehicles after the pandemic and the ongoing supply chain issues. Musk responded that “if inflation calms down, we can lower prices for cars.”
While Teslas are still production constrained, they would most definitely benefit from a reduction in price. Thanks to a string of price adjustments, even the company’s “affordable” vehicles like the Model 3 sedan and Model Y crossover have become substantially more expensive. The Model 3 RWD, for example, seemed like it was closing in on a starting price of $35,000 before. It now starts at $46,990.
The Model Y has seen equally significant price adjustments. The all-electric crossover is designed to be the SUV counterpart of the Model 3 in the way that it is attainable for more buyers. Yet today, the top-tier Model Y Performance starts at $69,990, higher than the Model S Long Range’s previous price of $69,420 back in 2020.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
