Elon Musk, CEO of Tesla and Spacex, says he has a “very bad feeling” about the US economy. President Joe Biden responded with a list of major investments by big companies and wished Musk well on his journey to the moon.
Elon Musk feels bad 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 “All recruitment worldwide temporarily suspended,” was sent two days after Musk asked employees to return to the workplace or leave. He also said he needs to cut about 10% of the staff at his electric vehicle company.
Musk recently warned that the US economy is either already in a recession or is heading for a recession. However, the billionaire CEO of Tesla and Spacex believes that the recession “Good thing‘, stating, ‘It has been raining money on fools for too long. Some bankruptcies must happen.” He also estimated that the recession would continue between 12 and 18 months.
Morgan Stanley analyst Adam Jonas believes that Musk’s concerns should be taken into account, explaining:
Elon Musk has a uniquely informed view of the global economy. We believe that the message from him carries high credibility.
Biden responds to Elon Musk’s comments
On Friday, President Joe Biden responded to Musk’s comment with “very bad feelings” about the US economy.
Well, let me tell you, while Elon Musk is talking about it, Ford is significantly increasing its investment, Biden said, pulling a card from his jacket pocket.
“Ford is increasing its investments and building new electric cars, and I could add 6,000 new employees — union employees — in the Midwest. Former Chrysler company Stellantis is also making similar investments in electric cars. Intel is adding 20,000 new computer chip manufacturing jobs,” the president continued.
Biden concluded as he put his notebook back in his jacket pocket:
So, you know, a lot of luck on his trip to the moon.
After Biden responded, Musk tweeted, “Thank you, Mr. President!” His tweet included a link to announcing that NASA had selected SpaceX for the next landing of Americans on the Moon.
Musk is not the only one to predict that the US economy is heading into a recession. The Great Short Investor Michael Bury He recently warned of a looming consumer recession. Goldman Sachs’ Lloyd Blankfein He advised every business and consumer to prepare for a recession. CEO of Soros Fund Management Don Fitzpatrick Recession is inevitable, he said. CEO of JPMorgan Jimmy Damon He sees an economic hurricane coming, and is telling investors to brace themselves. One of the worst predictions came from the author of Rich Dad Poor Dad Robert Kiyosaki Who said markets are collapsing, depression and civil unrest is coming.
What do you think of Elon Musk’s comments and Biden? Let us know in the comments section below.
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