The global economy is 'past peak inflation', says Tesla CEO Elon Musk

Elon Musk said he sees signs the global economy is “past peak inflation.”

Speaking at the electric-vehicle maker’s annual shareholder meeting, Musk said Tesla’s commodity and component costs are trending downward over the next six months. He also reiterated that he expects a mild recession that could last 18 months. 

“The trend is down, which suggests we are past peak inflation,” Musk said at Tesla’s Austin headquarters and factory. “I think inflation is going to drop rapidly” at some point in the future, he said.

“We sort of have some insight in to where prices are headed over time,” Musk said, citing Tesla’s need to buy raw materials often months in advance of when they’re used. 

“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.”