Elon Musk says Tesla can lower its prices 'if inflation calms down' — after increasing prices nearly every month last year

• Elon Musk said on Friday that Tesla could lower its prices if "inflation calms down."
• Tesla increased prices for some of its models by as much as $6,000 last month.

Elon Musk said on Friday that Tesla could lower its prices, but it would be dependent on inflation.

"If inflation calms down, we can lower prices for cars," the Tesla CEO said on Twitter.

The electric-car maker has hiked its prices at least three times this year. In 2021, the company increased its prices nearly every month amid supply-chain snags and industry shortages.

In June, Tesla increased the prices for all of its models -- hiking some products by as much as $6,000. Over the last year, the price of Tesla's cheapest car, the Model 3, has risen by $10,000 to $40,390. Meanwhile, Tesla's most expensive car, the Model X Plaid, is being sold for over $130,000.

But, Musk's company isn't the only automaker jacking up prices. Legacy automakers and startups alike have been forced to raise prices to combat higher material and labor costs -- and skyrocketing costs are showing no signs of flagging.

The pace of inflation in the US is currently near a 41-year-high, according to data from the US Bureau of Labor Statistics. On Wednesday, the agency reported that the cost of goods increased more than expected in June — rising a whopping 9.1%.

In May, a research firm estimated that EV battery costs will spike by 22% in the next four years. The month before, Rivian CEO RJ Scaringe warned the industry is likely to face a devastating shortage of batteries for electric cars that could dwarf the computer chip shortage.

In the past, Musk has repeatedly said he plans to sell an electric car for $25,000 in an effort to make EVs more accessible. But, the CEO said the plans were on hold earlier this year.

"At some point we will, but we have enough on our plate right now, too much on our plate frankly," the billionaire told investors in a conference call.

Over the past few months, the billionaire has expressed concern over the state of the US economy, warning that he believes the nation is in a recession that could last up to 18 months and implementing a slew of layoffs. Last month, Musk said Tesla is losing billions of dollars at its new factories, which he dubbed "money furnaces."

Musk has complained about the impact of supply-chain snags in the past. Last year, the billionaire said Tesla faced "some of the most difficult supply-chain challenges that we've ever experienced in the life of Tesla."