Elon Musk is optimistic about the future. At a meeting with Tesla shareholders, the billionaire spoke about the upcoming recession in the US economy.
During the last Tesla shareholders’ meeting, Elon Musk spoke about the economic challenges that the United States is struggling with.
In order to highest inflation in 40 years to get a grip, the Federal Reserve (FED) raised the key interest rate several times. This had an impact on numerous industries, as well as on the crypto sector. In addition, the Russia-Ukraine conflict well the growing tensions with China go to more Uncertainties in the markets. Many economists therefore assume that the United States a massive economic recession could experience it.
Elon Musk remains optimistic
Elon Musk has already warned of the consequences of the crisis. The billionaire believes that the crisis could cause numerous bankruptcies and last until the end of 2023. However, the richest man in the world seems confident that the Recession will not be as bad as many predict.
Even if the Tesla CEO believes that “macroeconomic forecasts are a recipe for disaster”, Musk predicts that the coming crisis “relatively mild” will fail.
One reason for this is the low debt of most companies. “Corporate debt is relatively low at the moment, so I would say it will be a mild to moderate recession, maybe 18 months or so.”
Elon Musk: A picture of BeInCrypto.com
Inflation will tend to decrease
Regarding inflation, Elon Musk stated that he and the Tesla team “have a good idea of where the prices of things will go over time”. The reason for this is that the automotive company has to trade with different products and raw materials from different parts of the world.
Since the prices of the goods used by the company are already falling, this trend may continue in the next six months. For this reason Elon Musk believes that inflation will ”fall rapidly”.
“We get a lot of information about how prices develop over time, because when you make millions of cars, you have to buy goods many months before the time when they are needed […] Since it is a long supply chain with a large inertia, we have an idea of how prices will develop over time. The interesting thing that we are seeing now is that the prices of most of the raw materials needed, most of the things that are installed in a Tesla – not all, but more than half – will fall in six months, six months from now.“