“A recession is inevitable at some point,” he told Bloomberg News Editor-in-Chief John Micklethwait. As to whether there is a recession in the near term, that is more likely than not … It is not a certainty, but it appears more likely than not.”
In late May, Musk addressed the matter on Twitter after one of his followers asked him whether or not the billionaire thought the U.S. was approaching a recession.
“Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen,” he said somewhat optimistically.
Musk then followed up by saying he expected the economy to suffer for 12 to 18 months and noted that companies with a negative cash flow needed to fold in order for this to happen so that they can “stop consuming resources.”
“We just don’t know if it’s a minor one or Superstorm Sandy,” he said at a financial conference. “You better brace yourself.”
Musk himself is feeling the pressure — in early June, he wrote an email to Tesla employees saying he had a “super bad feeling” about the state of the economy and planned to cut 10% of the company’s total workforce.
As per an end of year SEC filing Tesla was employing 99,290 people worldwide by the end of 2021.