Elon Musk: ‘The peak of inflation is behind’

Elon Musk, CEO of Tesla Inc and the world’s richest billionaire, said that the global economy has passed the period of “peak inflation”.

Speaking at Tesla’s annual shareholder meeting, billionaire Elon Musk said the cost of materials and components of this business will continue to stay in a downward trend for at least the next 6 months. He also reiterated his previous view that the US would fall into a mild recession lasting 18 months.

” Costs are going down, which means we’re past the peak of inflation, ” Musk said at his Austin, Texas factory headquarters. “ I think inflation will drop quickly ” at some point in the future, he said.

Central banks on a global scale are racing to tighten monetary policy as high inflation has a negative impact on consumers and corporate profits. In the US, the consumer price index (CPI) increased 9.1% in June from a year earlier, and the Federal Reserve (Fed) has warned that the price increase has not slowed down. July inflation data will be released on August 10.

“ We have enough evidence to base our opinion on the near-term outlook for commodity prices, ” as Tesla typically orders raw materials months before they are used, Musk said.

” The interesting point is that the majority of imported Tesla goods and components, although not all but oversold, are in a downtrend for at least the next six months ,” he added.

Although possessing a more comprehensive view of the trend of input costs of businesses and consumer behavior, Elon Musk is still cautious about the prospect of ” telling before the last step “, considering his comments. are merely “conjectures”. He warned that the current trend could reverse at any time.