Billionaire entrepreneur and Dallas Mavericks owner Mark Cuban responded to Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk’s comments about inflation, saying he believed it was “ridiculous” to use a single inflation number as various categories behaved differently.
What Happened: Cuban said on Twitter (NYSE:TWTR) that while speculative assets will see accelerating inflation amid increasing demand in a low-interest rate world, the market will normalize once traders that are short on the assets come in as uncertainty diminishes.
I think it's ridiculous to use a singular inflation number. Different categories behave differently. https://t.co/xyOqRT6UOAThe “Shark Tank” fame investor also suggested steps that the government could take as part of an effort to control prices.— Mark Cuban (@mcuban) March 14, 2022
It may seem counter intuitive, but one consideration to hold prices, is for the gov to act as a market maker and short into the increase and cover when price normalizes. Maybe there is econ wisdom to counter this? Support it ? What do the economists think? https://t.co/BrM3cVmBPwCuban made the comments after Musk asked his followers on Twitter about the “probable inflation rate” over the next few years.— Mark Cuban (@mcuban) March 14, 2022
Why It Matters: Musk said on Sunday that Tesla and SpaceX were seeing significant inflationary pressure for raw materials and logistics.
See Also: Elon Musk Bearish On US Dollar Right Now, Says He Still Owns Dogecoin And These 2 Cryptocurrencies And Not Selling
Last week, the Labor Department reported a 7.9% year-over-year increase in the consumer price index in the month of February, marking the largest inflation growth since 1982. The data has raised concerns about how the Federal Reserve will combat inflation without causing a recession.
Commodity prices have spiked to the highest level since 2008 following Russia’s invasion of Ukraine.
Cuban, a big proponent of Dogecoin (CRYPTO: DOGE) like Musk, said in January that Bitcoin (CRYPTO: BTC) will never be a hedge against inflation and he believes Dogecoin is better suited for payments than the apex cryptocurrency.
The Dallas Mavericks became one of the first entities to begin accepting Dogecoin for ticket purchases and merchandise in March last year.
Price Action: Tesla shares closed 5.1% lower in Friday’s regular session at $795.35.
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