Why are you thinking about a crash every day! Musk: Demand growth is at least 10 times supply, storage prices should rise, not fall.

Recently, Musk publicly commented on the global storage market, which is in the midst of a price surge, during SpaceX's Q2 2026 earnings call, directly pointing out the underlying logic behind this round of storage price fluctuations.

His assessment was very direct: the current storage industry's supply capacity grows by roughly 20% annually, but downstream demand is already growing at 200% or even higher per year. The supply-demand relationship is severely imbalanced, and sustained price increases are the inevitable result of basic economic laws at work.

According to the full record of SpaceX's public earnings call, Musk shared his views on the core bottlenecks in current AI infrastructure construction, reminding all industry participants that when observing industry progress, one must accurately identify the most restrictive factor dragging down the entire supply chain.

He analyzed that one can compare the output growth rates of the two core hardware components — logic chips and storage. For a long time prior, logic chips were the weak link constraining AI industry development, but the current core limiting factor has shifted to storage.

At present, the global storage industry's annual output growth rate is approximately 20%. For any large-scale mature manufacturing industry, this expansion speed is already extremely fast, nearly reaching the capacity ceiling of the existing industrial system.

But demand-side growth shows no sign of stopping. The storage demand driven by the AI industry is clearly not limited to 20% annual growth — actual demand is growing by 200% or even more each year. Demand growth far outpaces supply expansion. According to the most basic economic principles, storage prices should continue to rise going forward, and there is simply no possibility of a significant decline.