Tesla and Spacex CEO Elon Musk said he had a “super bad feeling” about the US economy. President Joe Biden responded with a list of major big business investments 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 “super bad feeling” about the US economy in an email to executives seen by Reuters.
The email, titled “suspend all hiring globally”, was sent two days after Musk told staff to return to work 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 is either already in recession or heading into a recession. However, the billionaire CEO of Tesla and Spacex believes that a recession is “a good thingsaying, “It’s been raining money on fools for too long.” Some bankruptcies have to happen. He also estimated that the recession will last between 12 and 18 months.
Morgan Stanley analyst Adam Jonas believes Musk’s concerns should be taken into account, stating:
Elon Musk has a unique view of the global economy. We believe that a message from him would carry great credibility.
Biden responds to Elon Musk’s comments
On Friday, President Joe Biden responded to Musk’s “super bad feeling” comment on the US economy.
“Well, let me tell you, while Elon Musk is talking about this, Ford is massively increasing its investment,” Biden said as he pulled a note card from his jacket pocket.
“Ford is increasing investment and building new electric vehicles, 6,000 new employees – union employees, I might add – in the Midwest. The former Chrysler Corporation, Stellantis, is also making similar investments in electric vehicles. Intel is creating 20,000 new jobs in computer chip manufacturing,” the president continued.
Biden concluded by putting his note card back in his jacket pocket:
So, you know, good luck with his trip to the moon.
Following Biden’s response, Musk tweeted, “Thank you, Mr. President!” His tweet included a link to an announcement that NASA had 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 Bury recently warned of an impending consumer slump. Goldman Sachs’ Lloyd Blankfein advised every business and consumer to prepare for a recession. CEO of Soros Fund Management Dawn Fitzpatrick says a recession is inevitable. JPMorgan CEO Jamie Dimon sees an economic hurricane coming, prompting investors to prepare. One of the darkest predictions came from author Rich Dad Poor Dad Robert Kiyosaki who said markets are collapsing and a depression and civil unrest are coming.
What do you think of Elon Musk’s comments and Biden’s response? Let us know in the comments section below.
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