Elon Musk on Thursday made a prediction regarding inflation and also delved on global warming.
Musk's Bold Inflation Prediction: Inflation might be trending down, the Tesla, Inc. TSLA CEO said in a tweet. His views come at a time when the inflation in the U.S. is hovering at 40-year highs. The U.S. Labor Department data released in early July showed that the headline consumer price inflation was at 9.1% in June, the highest since 1981.
Musk had in December said that a recession may set in around “spring or summer 2022.”
The billionaire further added that more Tesla commodity prices are trending down.
Earlier this week, the price of the Tesla belt buck, which was unveiled to celebrate the opening of the Gigafactory Austin, was reduced by $50 to $100. When a fan account asked on Twitter whether Tesla vehicle prices will rise, Musk said,” It’s too early to say for sure.”
Benzinga's Take: Rising inflation has prompted the U.S. Federal Reserve to announce a string of rate hikes — and the central bank may not be done yet. Thursday’s GDP report showed a second-straight quarter of contraction, which is the technical definition of a recession.
The Biden administration, however, has maintained that the economy isn’t in the doldrums, going by the healthy labor market, and robust consumer spending and business investment.
Price Action: Tesla closed Thursday’s session 2.21% higher at $842.70, according to Benzinga Pro data.
Photo: Courtesy of Daniel Oberhaus on Flickr
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