Tesla CEO Elon Musk Says Inflation Has Peaked, But We’ll Be In Recession For 18 Months – Economics Bitcoin News

Tesla CEO Elon Musk Says Inflation Has Peaked, But We’ll Be In Recession For 18 Months – Economics Bitcoin News

Tesla CEO Elon Musk believes inflation has peaked and the US economy will be in recession for about 18 months. “We’re getting quite a glimpse of where the prices of things are going over time,” the billionaire explained, noting that “inflation will come down quickly.”

Elon Musk explains why he thinks inflation has peaked and the recession will last 18 months

Tesla and Spacex CEO Elon Musk shared his thoughts on the US economy, inflation and recession during Tesla’s 2022 annual meeting of shareholders on Thursday.

In response to a question about inflation, he explained: “We really get quite a bit of insight into where the prices of things go over time because when you’re building millions of cars, you have to buy goods many months before they’re needed… Because it’s a long chain supply with a huge amount of inertia, so we kind of have an insight into where prices are going over time.”

Musk elaborated: “The interesting thing we’re seeing now is that most of our products, most of the things that go into Tesla — not all, but more than half — are going down in price in six months, six months from now.” He added:

The trend is downward which suggests that we have passed the peak of inflation.

However, Musk noted, “Macroeconomic forecasts are a recipe for disaster, but I suspect we’re past peak inflation and we’re going to have a recession. I think it will be a relatively mild recession, but I’m just guessing here.”

Emphasizing that his view is “total speculation”, he said:

Our guess is that it’s a mild recession of 18 months or so, which is my best guess right now.

He explained: “We don’t have the fundamental misallocation of capital in the US that we had in the past, like we did until 2008 when we were building primary housing units at twice the rate of household formation, which obviously doesn’t make sense. A lot of companies were over the top.”

Musk concluded, “The leverage or debt that companies have right now is relatively low, so I would say probably, you know, a mild, moderate recession, maybe 18 months, and I think inflation will come down quickly. That’s my guess.”

The Tesla CEO’s remarks during the shareholder meeting mirrored tweets he posted on July 28. He wrote at the time: “Inflation may be on the decline… More of Tesla’s commodity prices are trending down than up.”

Musk began talking about the US economy in recession a few months ago after revealing in March that both Tesla and Spacex saw significant inflationary pressure.

“We’re probably in a recession and that recession is going to get worse, but these things pass and then there’s going to be a boom again… It’s probably going to be tough for, I don’t know, a year, maybe 12-18 months. ,” he he said in May.

He later said that the recession was “actually good thing” for the US economy, adding: “It’s been raining money on fools for too long. Some bankruptcies have to happen.”

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commodity prices, Elon Musk, Elon Musk inflation, Elon Musk predicts inflation, Predictions of Elon Musk, Elon Musk’s recession, Elon Musk predicts a recession, inflation has peaked, recession for 18 months, assembly of tesla shareholders, recession of the American economy

Do you agree with Elon Musk that inflation has peaked and the US economy will be in recession for about 18 months? Let us know in the comments section below.

Tesla CEO Elon Musk Says Inflation Has Peaked, But We’ll Be In Recession For 18 Months – Economics Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.




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