Elon Musk: US 'passed peak inflation' after Tesla sold 90% of Bitcoin
The company may be taken aback if the markets have already bottomed and the crypto is starting to generate serious returns again.
Market news
Bitcoin (BTC) is rare at Tesla, even as its CEO predicts that inflation in the United States has already peaked.
Speaking at Tesla's 2022 Annual Meeting of Shareholders on August 5, Elon Musk predicted that a coming U.S. recession would only be "mild to moderate".
Musk on costs: "The trend is downward"After recently selling off nearly all of its $1.5 billion BTC holdings, Tesla is seeing exactly the kind of economic landscape emerging in which risk assets thrive.
During a Q&A session at the annual meeting, Musk revealed that six-month commodity prices for Tesla parts are already getting cheaper, not more expensive.
Commodities, he said, are trending lower, suggesting that inflation has already peaked.
"We kind of have an idea of how prices are changing over time and the interesting thing we're seeing now is that most of our products, most things that go into a Tesla - not all of them, more than half – prices tend to go down in six months,” he said.
"That could change, of course, but the trend is down, suggesting we're past peak inflation."
Recovering from a period of inflation with falling commodities provides fertile ground for a rally in risk assets, including crypto. Theoretically, this results from lower inflation, which means less tightening by the Federal Reserve, providing favorable conditions for risky investments.
If strength returns to the markets and crypto outperforms, the trend will be ironic for Tesla, which shed virtually all of its BTC exposure — with a profit of just $64 million — last month.
At the time, Musk added that BTC could return to...
The company may be taken aback if the markets have already bottomed and the crypto is starting to generate serious returns again.
Market news
Bitcoin (BTC) is rare at Tesla, even as its CEO predicts that inflation in the United States has already peaked.
Speaking at Tesla's 2022 Annual Meeting of Shareholders on August 5, Elon Musk predicted that a coming U.S. recession would only be "mild to moderate".
Musk on costs: "The trend is downward"After recently selling off nearly all of its $1.5 billion BTC holdings, Tesla is seeing exactly the kind of economic landscape emerging in which risk assets thrive.
During a Q&A session at the annual meeting, Musk revealed that six-month commodity prices for Tesla parts are already getting cheaper, not more expensive.
Commodities, he said, are trending lower, suggesting that inflation has already peaked.
"We kind of have an idea of how prices are changing over time and the interesting thing we're seeing now is that most of our products, most things that go into a Tesla - not all of them, more than half – prices tend to go down in six months,” he said.
"That could change, of course, but the trend is down, suggesting we're past peak inflation."
Recovering from a period of inflation with falling commodities provides fertile ground for a rally in risk assets, including crypto. Theoretically, this results from lower inflation, which means less tightening by the Federal Reserve, providing favorable conditions for risky investments.
If strength returns to the markets and crypto outperforms, the trend will be ironic for Tesla, which shed virtually all of its BTC exposure — with a profit of just $64 million — last month.
At the time, Musk added that BTC could return to...
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