Tesla CEO Elon Musk has sharply criticised New York City Mayor Zohran Mamdani over his plan to open city-backed grocery stores that promise to sell some everyday food items at prices below traditional retailers. Responding to a post on X (formerly Twitter) that questioned how the proposed stores would operate, Elon Musk dismissed the plan and accused Mamdani of misleading New Yorkers. “Mamdani is a thief and a liar, plain and simple,” Musk wrote in the post. The billionaire also argued that advances in AI and robotics, rather than government-backed programmes, would eventually make goods and services much cheaper or even free.
What Elon Musk said about Zohran Mamdani’s grocery store plan
Elon Musk made the comments while responding to an X post by user @jason, who criticised the economics behind Mamdani’s proposal. The user argued that grocery businesses typically operate on very small profit margins and questioned the city’s plan to seek private operators to run the stores.Responding to the post, Elon Musk wrote: “What they’re doing won’t matter.” He then suggested that AI and robots could eventually transform the cost of producing and delivering goods and services. “AI & robots will actually deliver the free goods & services that those thieves pretend to offer, while actually stealing from others,” Musk said.“Mamdani is a thief and a liar, plain and simple,” he added.
What is Zohran Mamdani’s grocery store plan
Zohran Mamdani’s administration has proposed opening five city-backed grocery stores, with one planned for each of New York City’s five boroughs. The city has allocated $70 million in capital funding for the programme. The first store is expected to open in Hunts Point in the Bronx by the end of 2027, followed by locations in East Harlem, Brooklyn, Queens and Staten Island.Under the proposal, private grocery operators would handle day-to-day operations, including staffing, sourcing products and merchandising. The city would provide locations, cover major occupancy costs and set pricing and operating requirements.Mamdani’s administration says shoppers could save about 30% on a core basket of groceries. It estimates that the programme could save an average New Yorker about $90 a month, or roughly $1,000 a year.The basket is expected to include fresh produce, meat and seafood as well as around 20 categories covering pantry staples, dairy and refrigerated products. Prices for these products would be locked monthly instead of changing week to week.
Critics question how New York will fund lower grocery prices
The proposal has drawn criticism from economists, political commentators and business groups who question how the city can offer discounts of around 30% when grocery stores generally operate on thin profit margins. Critics argue that taxpayers could ultimately bear part of the cost through public funding, waived rent on government-owned properties and other support.They have also warned that publicly backed stores could put private supermarkets, bodegas and other small grocery businesses at a disadvantage because those businesses must pay expenses such as rent and property taxes themselves.Mamdani’s administration, however, argues that removing some of those major operating costs is precisely what will allow the city-backed stores to offer lower prices. The plan comes as New Yorkers continue to face grocery prices that remain substantially higher than they were before the Covid-19 pandemic.
Leave a Reply