Elon Musk reveals again with a doomsday message: "The recession may last until 2024"

Elon Musk reveals again with a doomsday message: “The recession may last until 2024”

After Jeff Bezos, founder of Amazon, Tesla chief Elon Musk is now also warning of turbulent economic times. The billionaire is convinced that the global recession can last until the spring of 2024. This is not the first time he has sent a doomsday message to the world.

Why is this important?

High interest rates, hyperinflation and the energy crisis in Europe, among other things, are causing more and more people to worry about a global recession. In recent weeks, some CEOs of US banks and Bezos have expressed concerns.
  • the essence: The fear of stagnation regularly rears its head. This is partly due to higher interest rates. For example, the US 10-year bond yield is currently just over 4.25%. This is the highest level in more than a decade. This makes loans more expensive, among other things, so that less capital flows into the real economy, slowing economic growth.
  • news: More and more big names in the world of banking and business are expressing their concerns about the economic situation around the world, or in specific countries, such as the United States. Musk now makes himself heard, too. According to him, the global recession will continue until the spring of 2024.

Concerns about economic growth

Tesla’s quarterly numbers showed, among other things, that third-quarter revenue came in within $21.45 billionWhich was lower than the expected $22.13 billion. Tesla fell short of consensus expectations for the first time since the third quarter of last year. Musk said on a conference call with several analysts that “some kind of recession (in China and Europe)” is putting pressure on Tesla sales.

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He echoed that message on Twitter, adding that the global recession is likely to last until the spring of 2024.

  • How is the situation at the moment? Global GDP grew by 6% in 2021, but the International Monetary Fund (IMF) expects growth to slow this year. up to 3.2 percent. This would be the lowest growth rate since 2001, excluding the financial crisis in 2008 and the brief downturn during the early days of the coronavirus pandemic.

This isn’t the first time Musk has expressed concerns about the economic situation, whether in his own country or not.

  • In August, he said it could take decades before moving on to sustainable energy and sustainable economy has been completed. Musk noted that the development of renewable energies must go hand in hand with oil and gas extraction, “because without that energy civilization would collapse.”
  • Musk said in June he had a “really bad feeling” about the economy. He cited this as an argument for such 10,000 jobs at Tesla, or 10 percent of the workforce. Then, as so often happens with Musk, he retraced his steps. He said in a tweet that The total workforce will increase.
  • In May, the billionaire warned that the United States was already Being in a recession. This stagnation will only get worse. “These things will pass and then there will be a boom again,” he added.

(ash)

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