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Tesla CEO expresses concern about the prospect of a U.S. recession. 'It's not a certainty, but it appears more likely than not,' he said.


June 21, 2022 07:22 AM UPDATED 8 MINUTES AGO



DOHA -- Tesla Inc. CEO Elon Musk said a 10 percent cut in salaried staff at the electric vehicle producer will happen over three months, as the world's richest man predicted a U.S. recession was more likely than not.

His remarks were his most detailed explanation of job cut plans and his first in-person appearance since Reuters reported at the start of this month that the company needed to cut staff by about 10% and was pausing hiring worldwide.

Speaking at the Qatar Economic Forum organized by Bloomberg, Musk said the cuts would apply only to salaried workers, meaning a 3.5 percent reduction in total headcount, changes he described as "not super material."

But he expressed concern about the prospect of a U.S. recession.

"It's not a certainty, but it appears more likely than not," he said.

Musk's outlook echoes comments from executives, including JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs President John Waldron. A "hurricane is right out there down the road coming our way," Dimon said earlier this month.

Whether the U.S. will go into recession has been a growing concern for CEOs, the Federal Reserve and the Biden administration.

U.S. President Joe Biden reiterated on Monday that he felt a U.S. recession was not inevitable, even as the world's largest economy struggles to tackle soaring gasoline prices and inflation, which is at its highest in 40 years.
Former U.S. Treasury Secretary Lawrence Summers told NBC News on Sunday he expected a recession.

In an email on June 2, seen by Reuters, Musk told Tesla executives he had a "super bad feeling" about the economy and that the company needed to cut staff by about 10 percent and "pause all hiring worldwide."
He said on Tuesday Tesla expected to increase the number of workers paid by the hour as opposed to on fixed salaries.

He also said he was sticking with digital currency and intended to personally support dogecoin.
Digital currency has been extremely volatile this year, but bitcoin surged following Tesla's announcement in February last year that it had bought $1.5 billion of the currency and for a short time accepted it as payment for vehicles.

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We are already in a deep depression. The reality of foreclosures in my area is hitting hard.
Do you ever come to the realization that your comments are seldom grounded in reality?

A depression by definition is GDP contraction of more than 10% and upwards of 25% unemployment.
 
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Do you ever come to the realization that your comments are seldom grounded in reality?

A depression by definition is GDP contraction of more than 10% and upwards of 25% unemployment.
I know it’s officially not a depression, however, to homeless families that cannot keep a roof, that is not comforting. They are in a full blown Biden Depression
 

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How can you have a "full blown depression" when you have a massive labor shortage?
Chill out, it was just an observation. I was only taking into account the highest inflation rate in 40 years, plus fuel prices going through the roof which leads to food and other consumer goods following right along. At some point it could all come tumbling down. No offense but I'll also take Elon's word over yours.
 

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Chill out, it was just an observation. I was only taking into account the highest inflation rate in 40 years, plus fuel prices going through the roof which leads to food and other consumer goods following right along. At some point it could all come tumbling down. No offense but I'll also take Elon's word over yours.
What people do not understand is that we now live in the era of personal truth, not objective truth. Therefore, if I say there is a depression, there is a depression, that is my truth. If I require you to address me as they them, was is, conqueror of the Spanish empire, and you don’t, I get triggered.
 

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Because they can see it coming and are getting ready for it? Will likely spur the thing on instead maybe. :unsure:
That's what I'm thinking. Self-fulfilling prophecy. I hate that Wall Street has the power to ruin all of us, simply because rich people get their panties in a twist or worry about stuff (even though their wealth insulates them from reality).
 

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That's what I'm thinking. Self-fulfilling prophecy. I hate that Wall Street has the power to ruin all of us, simply because rich people get their panties in a twist or worry about stuff (even though their wealth insulates them from reality).
Look around you. $1.30 for a bell pepper? this is what economy tanking looks like.
Brandon thinks it should cost more
 

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How can you have a "full blown depression" when you have a massive labor shortage?
Once all the air expels from the popped balloon, you'll have a job shortage...


Why would you cut the jobs BEFORE the recession? Hmmmm.....
Lots of companies are cutting jobs... Hmmmmm...
 

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We are already in a deep depression. The reality of foreclosures in my area is hitting hard.
All that means is a bunch of people where you live bought homes they couldn't afford.
IMO, we're gonna see lots of overpaying people getting foreclosed and repossessed.

They're hiring like crazy where I work. All-time record sales.
If we actually have a depression, I just might go buy something.
I'm not buying anything in this pricing environment.
 
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