Elon Musk, CEO of Tesla and Spacex, said he had a “very bad feeling” concerning the American economy. President Joe Biden responded with a list of major investments made by big companies and wished Musk luck on his trip to the moon.
Elon Musk’s bad feeling about the US economy
Tesla CEO Elon Musk said he had a “very bad feeling” about the US economy in an email to executives seen by Reuters.
The email, titled “suspend all hiring worldwide“, was sent two days after Mr. Musk asked his staff to return to the workplace or leave. He also said he needed to cut staff at his electric car business by around 10%.
Musk recently warned that the US economy was already in crisis and heading into a recession. However, the billionaire CEO of Tesla and Spacex believes that a recession would be “a good thing“, stating: “It’s been raining money on fools for too long. Certain bankruptcies must take place“. He also estimates that the recession will last between 12 and 18 months.
Morgan Stanley analyst Adam Jonas believes Musk’s concerns should be taken into account:
Elon Musk has a unique and informed perspective on the global economy. We think a message from him would be very credible.
Joe Biden responds to Elon Musk’s comments
On Friday, President Joe Biden responded to Elon Musk’s comment on the US economy, which he called “really bad feeling“.
“Well, let me tell you, while Elon Musk is talking about this, Ford is massively increasing its investments“, said Joe Biden.
“Ford is increasing investment and building new electric vehicles, 6,000 new employees – unionized employees, I might add – in the Midwest. The former Chrysler Corporation, Stellantis, is also making similar investments in electric vehicles. Intel creates 20,000 new jobs in computer chip manufacturing“, continued the president.
So, you know, good luck with his trip to the moon.
Following Mr. Biden’s response, Mr. Musk tweeted: “Thank you, Mr. President!“. His tweet included a link to an announcement that NASA has chosen Spacex to land the next Americans on the Moon.
Musk is not alone in predicting that the US economy is heading into a recession. The Big Short investor Michael Burry recently warned of a looming consumer slump. Lloyd Blankfein of Goldman Sachs advised all businesses and consumers to prepare for a recession. Dawn Fitzpatrick, CEO of Soros Fund Management, said a recession was inevitable. Jamie Dimon, CEO of JPMorgan, sees an economic hurricane coming and asks investors to prepare. One of the bleakest predictions comes from Robert Kiyosaki, author of Rich Dad Poor Dad, who said markets are crashing and a depression and civil unrest are ahead.
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