Elon Musk thinks things are looking up. In a new meeting with Tesla shareholders, the billionaire was optimistic about the future of the US economy.
During Tesla’s latest shareholder meeting, the billionaire spoke about the difficulties facing the world’s largest economy.
The Federal Reserve (FED) raised its interest rates to tackle the highest inflation in 40 years. This has affected many industries including the crypto sector. It also includes the uncertainties caused by the conflict between Russia and Ukraine and escalating tensions with China. This has led many economists to believe that the United States will enter a major period of economic recession.
Elon Musk Confident About the Future
Musk himself has already warned about what is going to happen next. He said a period of strong crisis could lead to many bankruptcies and extend to the end of 2023. However, the world’s richest man is confident that the scenario will not be as bad as many projects.
Despite noting that “making macroeconomic forecasts is a recipe for disaster,” he predicts that the coming crisis will be “relatively mild”.
One reason for this would be the low debt of most companies. “The debt that companies have now is relatively low, so I would say probably, a mild to moderate recession, maybe 18 months or so.”
inflation falls
On inflation, the Tesla CEO commented that he and his team “have a pretty good view of where the prices of things are going over time.” This is due to the fact that the automotive company needs to deal with different products and inputs from different parts of the world to carry out its activities.
“We get a lot of information about where the prices of things are going over time because when you build millions of cars, you have to buy stuff months before they are needed… because it takes a long time. There’s a supply chain that has a huge amount of stuff. Inertia, so we have some sort of idea of where prices are going to move over time. The interesting thing we’re seeing now is that most of our goods, most of the things The prices that go into Tesla — not all, but more than half — are falling six months, six months from now.”
Since the price of used goods by the company is already falling, this is a trend that should continue for the next six months. Because of this, he estimates that inflation will “fall sharply.”
For many analysts, a correction in the world economic scenario is crucial for the cryptocurrency market to re-enter a bullish cycle and reach new highs and records.
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