Elon Musk, CEO of Tesla and SpaceX, has admitted that raw materials and logistics are increasingly expensive for his two companies. However, he insisted he would not be selling his cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Elon Musk Addresses Inflation
Elon Musk, CEO of Tesla and SpaceX, began a series of tweets on Sunday evening about high inflation. First, he asked his 7.7 million Twitter followers, “What do you think about the probable inflation rate over the next few years?” Tesla and SpaceX are also experiencing significant inflationary pressures in raw materials and logistics, according to Musk.
Others are seeing the same thing, according to SpaceX CEO Elon Musk. With European natural gas prices at record highs and global commodity prices poised for the biggest weekly rally in more than 50 years, he cited a recent article in the Financial Times.
One of JPMorgan’s analysts was quoted by the publication as saying: “Events in Russia and Ukraine are unleashing exceptional commodity price moves, which could have structural implications on long-term supply, but we also believe there are credible threats of demand destruction as commodity prices melt up.”
In response to Musk’s tweets about inflation, a large number of people took to social media. Cullen Roche, the founder of Orcam Group, elaborated: “The probability of 10 percent + inflation for much of 2022 is extremely high.” While this raises the risk of deflation in 2023 and 2020, it also raises the risk of the Fed making a policy mistake and/or prices correcting by crashing,” he said.
“The U.S. inflation rate rises to 7.9 percent, its highest level since 1982,” noted Compound Capital Advisor founder Charlie Bilello last week. For the first time since 1982, core inflation (which excludes food and energy) has risen to 6.4 percent.
Cryptocurrencies and Elon Musk’s Inflation Advice
Microstrategy CEO Michael Saylor, a pro-bitcoin supporter, was one of those who responded to Musk. He posted on Twitter:
Consumer inflation in the United States is expected to remain near all-time highs, while asset inflation is expected to run at a much higher rate. Weaker currencies will be devalued, and investors will move their money from safe havens like cash and government bonds to more risky investments like bitcoin.
Saylor’s conclusion did not surprise Musk in the least. He said, “It’s not a total surprise that you came to that conclusion.” It is generally better to own physical things like a home or stock in companies you think make good products than dollars, according to SpaceX’s boss, who continued.
In a follow-up statement, Tesla’s chief technology officer said that he still owns three cryptocurrencies and has no plans to sell them. Tesla CEO Elon Musk recently wrote on Twitter, “I still own & won’t sell my bitcoin, Ethereum, or doge.
In June of last year, he first revealed that he held BTC, ETH, and DOGE on his own behalf. In addition, he claimed that Spacex is the sole owner of Bitcoin (BTC). Tesla’s fair market value of bitcoin holdings as of December 31 was $1.99 billion, according to a filing with the U.S. Securities and Exchange Commission (SEC).
As part of a series of tweets on Monday, Tesla CEO Elon Musk also challenged Vladimir Putin to “single combat.” “The stakes are Ukraine,” he said. Just over an hour later, he tweeted again, asking the Kremlin if they were in favor of a showdown.
Two shipments of Starlink equipment were sent to Ukraine by SpaceX’s CEO. Vice Prime Minister Mykhailo Fedorov of Ukraine said, “Starlink keeps our cities connected and emergency services saving lives.”
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