As it continues to be a major topic in the U.S., Elon Musk laments how inflation pressure is impacting both of his companies, SpaceX and Tesla. On Sunday (March 13th), the billionaire took to his Twitter account to share some advice to his followers on where to spend their money when inflation is high.
At A Glance
- Inflation in the U.S. has reportedly hit a 7.9% year-on-year in February. This is the highest level since 1982.
- Elon Musk tells his Twitter followers to “own physical things” while inflation is high.
- Musk further reveals that Tesla and SpaceX were seeing a signifiant recent inflation pressure in raw materials and logistics.
- However, Musk isn’t planning to sell his Bitcoin, Ethereum of Dogecoin holdings.
Elon Musk Reveals How Tesla and SpaceX are Seeing Inflation Pressure
In his tweet on Sunday, Elon Musk declared that his companies Tesla and SpaceX are seeing significant recent inflation pressure in raw materials and logistics. He also shared that his companies are not alone in this by posting an article. This shows commodity prices soar to the highest level since 2008. This is all due to Russia’s supply fears.
Business Insider reports Musk advised his followers it was better to own physical things during high inflation. “As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products than dollars when inflation is high.”
However, Musk did note that he isn’t selling his cryptocurrency holdings. “I still own and won’t sell my Bitcoin, Ethereum, or Doge FWIW.”
The Bureau of Labor Statistics recently reported that inflation in the U.S. hit 7.9% year-on-year last month. This is notably the highest level since 1982. Prior to the economic situation, Musk declared in 2020 that he was planning to sell “almost all” of his belongs. This includes his multimillion-dollar property portfolio. At the time of his declaration, Musk owned at least seven houses worth more than $100 million in total. He sold his last remaining home at the end of 2021.
Grimes Recently Stated That Elon Musk Does Not Live Like A Billionaire
During a recent interview with Vanity Fair, Elon Musk’s on-again/off-again girlfriend, Grimes, stated that Musk does not live like a billionaire. “Bro lives at times below the poverty line. To the point where I was like, can we not live in a very insecure $40,000 house? Where the neighbors like, film us, and there’s no security. And I’m not eating peanut butter for eight days in a row?’”
In regards to projects that Elon Musk is working on, Grimes notes that one project is getting to Mars. “The Mars project is hard. There’s no income for it. There’s no way for it to make money. It’s for the benefit of humanity and it’s dangerous. And its expensive. People are like, ‘He’s hoarding money!’ No, he’s spending everything on R&D.”