Tesla CEO Elon Musk Says Inflation Has Peaked — But We’ll Have a Recession for 18 Months

Tesla CEO Elon Musk believes ostentation has peaked and the U.S. system volition beryllium successful a recession for astir 18 months. “We bash get a just spot of penetration into wherever prices of things are going implicit time,” the billionaire explained, noting that “inflation is going to driblet rapidly.”

Elon Musk Explains Why He Thinks Inflation Has Peaked and Recession Will Last 18 Months

Tesla and Spacex CEO Elon Musk shared his presumption connected the U.S. economy, inflation, and recession during Tesla’s 2022 yearly gathering of stockholders Thursday.

Replying to a question astir inflation, helium explained: “We bash get a just spot of penetration into wherever prices of things are going implicit clip due to the fact that erstwhile you’re making millions of cars, you person to acquisition commodities galore months successful beforehand of erstwhile they’re needed … Because it’s a agelong proviso concatenation with a tremendous magnitude of inertia, truthful we benignant of person immoderate penetration into wherever prices are headed implicit time.”

Musk detailed: “The absorbing happening that we’re seeing present is that astir of our commodities, astir of the things that spell into a Tesla — not all, but much than fractional — the prices are trending down successful six months, six months from now.” He added:

The inclination is down which suggests that we are past highest inflation.

However, Musk noted: “Making macroeconomic prognostications is simply a look for catastrophe but my conjecture is that we are past highest ostentation and that we volition person a recession. I deliberation it volition beryllium a comparatively mild recession but I’m conscionable guessing here.”

Emphasizing that his presumption is “total speculation,” helium opined:

Our conjecture is that it’s a mild recession for 18 months oregon thing similar that, would beryllium my champion conjecture close now.

He explained: “We don’t person cardinal superior misallocations successful the U.S. arsenic we person had successful the past, similar starring up to 2008 wherever we were gathering superior lodging units astatine doubly the complaint of household enactment which evidently doesn’t marque sense. A batch of companies were over-levered.”

Musk concluded: “The leverage oregon indebtedness that companies person close present is comparatively debased truthful I would accidental probably, you know, mild, mean recession, possibly 18 months-ish, and I deliberation ostentation is going to driblet rapidly. That’s my guess.”

The Tesla CEO’s remarks during the shareholders’ gathering echoed the tweets helium made connected July 28. He wrote astatine the time: “Inflation mightiness beryllium trending down … More Tesla commodity prices are trending down than up.”

Musk began talking astir the U.S. system going into a recession a fewer months agone aft revealing successful March that some Tesla and Spacex saw significant ostentation pressure.

“We astir apt are successful a recession and that recession volition get worse but these things walk and past determination volition beryllium roar times again … It’ll astir apt beryllium immoderate pugnacious going for, I don’t know, a year, possibly 12-18 months,” helium said successful May.

He subsequently said that a recession “is really a bully thing” for the U.S. economy, adding: “It has been raining wealth connected fools for excessively long. Some bankruptcies request to happen.”

Do you hold with Elon Musk that ostentation has peaked and the U.S. system volition beryllium successful a recession that volition past astir 18 months? Let america cognize successful the comments conception below.