There might be an impending price reduction in Teslas cars.
Tesla CEO Elon Musk tweeted on Friday that the electric car company could cut down prices if inflation “calms down.”
He also added that Tesla is waiting for inflation to “calm down” before it can reduce the prices of its electric vehicles, which have increased 20-30 percent over the last two years.
The inflation rate in the U.S. has increased by 9.1 percent annually, to a nearly 41-year high, according to the Bureau of Labor Statistics.
Musk has said he plans to sell an electric car for $25,000 in an effort to make EVs more accessible in the past. Still, the company has increased the prices of its entire product line in less than two years.
However, the price increases have not affected Tesla’s demand. There is still a backlog of orders, with some of its models still having a 6 to 10-month delivery timeline on new orders.
Tesla CEO Elon Musk was asked about when we can expect Tesla to lower prices again on Twitter, and he said that Tesla plans to lower the prices when “inflation calms down.”
Tesla increased the prices of all of its car models in the U.S. and China in March. The company again increased prices across its models in June when it increased the cost of its Model Y long-range, by $3,000, from $62,990 to $65,990.
Before the price increase, Musk said that he had a “super bad feeling” about the economy in June and said that he would need to cut 10 percent of salaried staff at Tesla, according to an email originally reported by Reuters.
Musk also told in March that Tesla and SpaceX, were both “seeing significant recent inflation pressure in raw materials & logistics.” Musk warned about the risk of recession as well in recent weeks.