Elon Musk believes that the future is bright. The billionaire sounded bullish about the end of the U.S. economy at a recent meeting with Tesla shareholders.
During the most recent Tesla shareholder meeting, the billionaire discussed the challenges confronting the biggest economy in the world.
In response to the greatest inflation rate in forty years, the Federal Reserve (FED) increased interest rates. Numerous analysts now fear that the United States will suffer a severe economic recession.
Elon Musk Is Certain of the Future
Musk has already issued a warning about what is next. One explanation for this is the low debt levels of the majority of firms. The current status of corporate debt is relatively modest, therefore, I anticipate a mild to moderate recession lasting around 18 months.
Regarding inflation, the CEO of Tesla said that he and his staff “have a solid idea of where prices are headed over time.” This is because the automobile industry must deal with many goods and inputs from various regions of the globe to conduct its business.
“We get a great deal of information on how costs change over time because, to produce millions of automobiles, we must purchase materials several months in advance… Because the supply chain is extensive and has a great deal of inertia, we have some notion of where prices are headed over time. In six months, the prices of most of our commodities and more than half of the components that go into a Tesla will have decreased.”
Since the company’s primary inputs are seeing price decreases, this pattern should continue for the next six months. As a result, he predicts that inflation will “decrease sharply.”
It is widely believed that the cryptocurrency market cannot return to a positive cycle and set new records without a general improvement in the global economic environment.