Tesla and Spacex CEO Elon Musk says he has a “super bad feeling” about the U.S. economy. President Joe Biden responded with a list of major investments by large corporations and wished Musk luck on his trip to the moon.
Tesla CEO Elon Musk said he has a “super bad feeling” about the U.S. economy in an email to executives seen by Reuters.
The email, titled “pause all hiring worldwide,” was sent two days after Musk told staff to return to the workplace or leave. He also said he needs to cut about 10% of staff at his electric car company.
Musk has recently warned that the U.S. economy is either already in a recession or is headed towards one. However, the billionaire CEO of Tesla and Spacex believes that a recession is “a good thing,” stating: “It has been raining money on fools for too long. Some bankruptcies need to happen.” He also estimated that the recession will last between 12 and 18 months.
Morgan Stanley analyst Adam Jonas believes that Musk’s concerns should be heeded, elaborating:
Elon Musk has a uniquely informed insight into the global economy. We believe that a message from him would carry high credibility.
On Friday, President Joe Biden responded to Musk’s “super bad feeling” comment about the U.S. economy.
“Well, let me tell you, while Elon Musk is talking about that, Ford is increasing their investment overwhelmingly,” Biden said, pulling out a notecard from his jacket pocket.
“Ford is increasing their investment and building new electric vehicles, 6,000 new employees ― union employees, I might add ― in the midwest. The former Chrysler Corporation, Stellantis, they are also making similar investments in electric vehicles. Intel is adding 20,000 new jobs making computer chips,” the president continued.
Biden concluded while putting his notecard back into his jacket pocket:
So, you know, lots of luck on his trip to the moon.
Following Biden’s response, Musk tweeted, “Thanks, Mr. President!” His tweet included a link to an announcement that NASA picked Spacex to land the next Americans on the moon.
Musk is not the only one who has predicted that the U.S. economy is headed towards a recession. The Big Short investor Michael Burry recently warned of a looming consumer recession. Goldman Sachs’ Lloyd Blankfein advised every company and consumer to prepare for a recession. Soros Fund Management CEO Dawn Fitzpatrick said a recession is inevitable. JPMorgan CEO Jamie Dimon sees an economic hurricane coming, telling investors to brace themselves. One of the most dire predictions came from Rich Dad Poor Dad author Robert Kiyosaki who said that markets are crashing and a depression and civil unrest are coming.
What do you think about Elon Musk’s comments and Biden’s response? Let us know in the comments section below.