In an email to Tesla executives reviewed by Reuters, Tesla CEO Elon Musk claimed he had a “very awful feeling” about the US economy.
President Joe Biden reacted with a list of big corporate investments and wished Musk success on his lunar mission.
US economy about to enter recession
Elon Musk, CEO of Tesla and SpaceX, says he has a “very awful feeling” about the US economy.
The email, headed “stop all hiring globally,” was issued two days after Musk instructed employees to come back to work or go.
He also stated that he has to reduce his electric car company’s workforce by around 10%.Musk has stated that the United States’ economy is either in or about to enter a recession.
The wealthy CEO of Tesla and SpaceX, on the other hand, feels that a recession is “a wonderful thing,” saying, “It has been showering money on fools for far too long.” Some bankruptcies are necessary.”
He also predicted that the decline would endure 12 to 18 months.Elon Musk has an unbelievable understanding of the global economy. We feel communication from him would be quite credible.
Musk’s reservations, according to Morgan Stanley analyst Adam Jonas, should be taken seriously.
Biden’s reply to Musk
President Joe Biden reacted to Musk’s “very awful feeling” remark about the US economy on Friday.
“Well, let me tell you,” Biden continued, removing a notecard from his jacket pocket, “while Elon Musk is talking about that, Ford is raising their investment significantly.”
“Ford is boosting its investment and constructing new electric vehicles in the Midwest, employing 6,000 additional people, all of whom are union employees.” Stellantis, the erstwhile Chrysler Corporation, is making comparable investments in electric cars.
“Intel is creating 20,000 new jobs in the computer chip industry,” said the president.
Musk isn’t the only one who believes the United States is on the edge of a recession. Michael Burry, the Big Short investor, recently predicted a consumer recession. Lloyd Blankfein of Goldman Sachs recommended every firm and consumer plan for a recession. Dawn Fitzpatrick, CEO of Soros Fund Management, believes a recession is unavoidable. JPMorgan CEO Jamie Dimon sees an economic storm coming and warns investors to prepare.
One of the more alarming forecasts came from Robert Kiyosaki, author of Rich Dad Poor Dad, who said that markets are collapsing and that a collapse and social upset are on the way.
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Source: https://www.thecoinrepublic.com/2022/06/05/i-have-an-awful-feeling-about-the-us-economy-elon-musk-know-why/