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Elon Musk believes a recession is “inevitable” sooner or later

Musk had previously said he had a “super bad feeling” about the US economy (Image: Getty Images North America)

Tesla CEO Elon Musk says a US recession is “more likely than not,” confirming a 10% cut in the electric carmaker’s workforce over three months.

“At some point, a recession is inevitable. It’s more likely that there will be a recession in the short term,” Musk said in an interview at the Qatar Economic Forum in Doha on Tuesday.

Musk’s comments confirmed reports earlier this month that he told Tesla executives that the company was cutting about 10% of its jobs because he had a “super bad feeling” about the U.S. economy.

“Tesla is reducing its salaried workforce by about 10% over the next likely three months,” Musk said in a video conference call at the Bloomberg-hosted event.

“We expect our hourly workforce to grow. But we’ve grown very quickly on the payroll side, and we’ve grown a little too fast in some areas.

Tesla

Workers assemble cars on the assembly line at Tesla’s Fremont plant (Image: Getty Images)

Tesla has just under 100,000 employees, but Musk said the cuts would mean a reduction of about 3.5% as white-collar workers make up about a third of the workforce.

The electric car company will instead increase the number of hourly workers, who make up about two-thirds of the workforce.

Musk echoed the sentiments of US President Joe Biden, who said on Monday that he believes a US recession is not inevitable, even as the world’s largest economy struggles with high gas prices and inflation rising is its highest level in 40 years.

Other executives, including JPMorgan CEO Jamie Dimon, warned this month that a “hurricane is heading straight for us.”

In the interview, Musk also mentioned his $44 billion (£36 billion) offer to buy Twitter, which the company’s board of directors unanimously endorsed yesterday.

Elon Musk

SpaceX CEO wants 80% of North America and half the world on Twitter (Images: AFP/Reuters)

Musk said there were unresolved issues, including the debt portion of the deal and the number of spam users.

Earlier this month, the billionaire threatened to end his agreement to buy Twitter until the social media giant gave him information about the number of spam bot accounts on the platform.

Twitter then agreed to give Musk access to the tweet stream the billionaire wanted.

“We are still waiting for a resolution on this matter and it is a very important matter,” he said.

The SpaceX CEO said he wants 80% of North America and half the world on Twitter.

“My aspiration for Twitter is to be as inclusive as possible,” he said.

MORE: Elon Musk’s ex-wife Justine speaks out after daughter’s name change: ‘I’m very proud of you’

MORE : Twitter board unanimously approve Elon Musk’s £35bn takeover bid

https://metro.co.uk/2022/06/22/elon-musk-believes-a-recession-is-inevitable-sooner-than-later-16872747/ Elon Musk believes a recession is "inevitable" sooner or later

Justin Scacco

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