Elon Musk, Chief Executive Officer, Tesla Inc, said on Sunday that he and his rocket company SpaceX are facing significant inflationary pressure in raw materials and logistics, Reuters said.
Musk in a tweet also asked about inflation rate outlook and said his companies "are not alone", retweeting an article saying the Ukraine-Russia conflict sent commodity prices to their highest levels since 2008.
Russia's invasion of Ukraine has been ramping up the prices of metals used in cars, from aluminum in the bodywork to palladium in catalytic converters to the high-grade nickel in electric vehicle batteries, and drivers are likely to foot the bill, Reuters said.
Most major economies have only limited trade exposure to Russia: For the US it’s 0.5 percent of total trade. For China, around 2.4 percent, Associated Press had said earlier.
US President Biden termed the package of economic sanctions enforced against Russia "most significant in history" and claimed that it has caused consequential damage to the Russian economy.
"It has caused the Russian economy to crater. The Ruble is now down 50 per cent and worth less than one American penny since Putin announced his war," he told reporters at the White House after announcing an immediate ban on import of Russian oil and gas.
Russia’s invasion of Ukraine has put global commodity markets in disarray.
The Russian-Ukraine war can hit the global supply chains that are already constrained due to the pandemic and the worst impact will be on ongoing chip shortage because the warring nations brutally control supplies of key raw materials that go into making semiconductors, warns a report.
Since Russia ontrols as much as 44 per cent of global palladium suppplies, Ukraine produces a significant 70 per cent of the global supply of neon -- the two key raw materials that go into making chips, PTI said.
According to the agency, Russia controls 12 percent of the global crude oil production, 17 percent of natural gas, 5.2 percent of coal, 4.3 percent of copper, 6.1 percent each of aluminum and nickel, 15 percent of zinc, 9.5 percent of gold, 5.4 percent of silver, 14 percent of platinum, 44 percent of palladium and 11 percent of wheat.
On the other hand, Ukraine meets as much as 70 percent of the global neon demand.
