The Strategist

Elon Musk warns of recession risk for the US in the near future

06/22/2022 - 10:08

The world’s richest man, Elon Musk, who has a fortune valued at $213.9 billion according to Forbes Real-Time, suggested that a US recession may very possibly occur soon.

NVIDIA Corporation
NVIDIA Corporation
"A recession will unavoidably occur at some time. The likelihood of one occurring soon is greater than the likelihood of not," he added. "It's not a fact, but it seems more likely than not".

The CEO and creator of Tesla expressed his "extremely negative feeling" about the economy to the company’s management at the beginning of June. He said he was compelled to lay off around 10% of the employees at the electric vehicles factory.

Musk also admitted that over the following three months, there will be a 10% reduction in the paid personnel. He said that because more people will be employed on an hourly basis, there would only be a 3-3.5% decrease in the overall workforce at Tesla sites.

According to Bloomberg, Musk is not the only person raising the possibility of a recession. In a study released on June 20th, Goldman Sachs experts, under the direction of the bank's chief economist Jan Hatzius, revised their predictions for both recession and US GDP growth. They now predict that there will be a 30 percent chance of a US recession in 2023, up from their earlier estimate of 15 percent.