- Elon Musk predicted that the company’s commodity costs will begin to decline.
- Federal Reserve has been raising interest rates in an effort to contain inflation.
On Saturday, August 6, Tesla CEO Elon Musk held a shareholders’ meeting and gave some optimistic information regarding the world economy. As inflationary pressures begin to ease, Tesla CEO Elon Musk believes that the worst of the inflationary pressures may be behind us. Over the following six months, Elon Musk predicted that the company’s commodity costs will begin to decline.
According to Tesla’s CEO:
“The trend is down, which suggests we are past peak inflation. I think inflation is going to drop rapidly at some point in the future. We sort of have some insight in to where prices are headed over time. The interesting thing that we are seeing now is that most of our commodities, most of the things that go in to a Tesla — not all, but more than half — the prices are trending down in six months”.
Rising Interest Rates a Concern
At a four-decade high, inflation in the United States has sent the stock and cryptocurrency markets into a tailspin, as investors flock to safer investments like bonds and treasuries. This is because the Federal Reserve has been raising interest rates in an effort to contain inflation, which might have an adverse effect on economic development.
Outflows from cryptocurrency may, however, be curtailed if, as Elon Musk anticipated, inflationary pressure eases. This might also suggest that more investors are likely to keep current crypto investments and possibly create new ones for the long run.
When BlackRock and Coinbase announced their alliance only a few days ago it was widely anticipated. As a result of the agreement, BlackRock will be able to provide institutional customers with exposure to cryptocurrency. In the wake of BlackRock’s announcement, institutional interest in crypto shows no sign of losing steam.
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