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Tesla and Spacex CEO Elon Musk says the U.S. economy is likely in a recession and could be "challenging" for 12 to 18 months. He added: "The honest reason for inflation is that the government has printed one billion more money than it had."
Elon Musk on U.S. Recession and Inflation
Elon Musk, the CEO of Tesla and Spacex, talked about the U.S. economy on the All-In podcast, published Monday.
Commenting on whether the US economy is in recession, Musk stated:
We're probably in a recession and this recession is going to get worse, but these things are happening and there will be boom times again.... It will probably be tough for, I don't know, a year, maybe 12-18 months.
He added that 12 to 18 months is roughly how long it takes for a correction to occur. Recession fears have intensified recently as the Federal Reserve tightens monetary policy to help contain inflation.
Musk explained that in his view recessions are not necessarily a bad thing, pointing out that he has experienced some during his career in public companies. "what usually happens is, if this boom lasts too long, you get a misallocation of capital—you start pouring money on imbeciles, essentially," he described.
Noting that the price hike was the result of money printing, Tesla's boss said:
The honest reason for inflation is that the government printed a billion more money than it had— It's not like, you know, super complicated.
Musk added that countries like Venezuela had already been on the same path.
Tesla management is currently in the midst of a takeover bid to purchase twitter inc. He offered the social media giant around $44 billion that Twitter accepted. However, the deal is now .
Musk also said he could charge less for twitter, indicating that there may be at least four times more false accounts than what the business said. He nodded: "You can't pay the same price for something that is far worse than they claimed."
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