Elon Musk says ‘inevitable’ US recession will probably come soon | Elon Musk

Elon Musk has warned that a US recession is “more likely than not” as Tesla’s chief executive confirmed plans to cut the electric carmaker’s salaried workforce by 10% over the next three months.

The world’s richest man has said a recession in the United States is inevitable but will most likely come in the short term.

“A recession is inevitable at some point. As to whether there’s a near-term recession, it’s more likely than not,” Musk said in a videoconference interview at the Qatar Economic Forum in Doha on Tuesday.

Musk said Tesla plans to cut the salaried workforce by 10%, confirming the plans revealed in an internal email this month by Reuters.

“Tesla is cutting its salaried workforce by about 10% over the next three months, probably,” Musk said at the Bloomberg event. “We plan to increase our hourly workforce. But we grew very fast on the employee side, and we grew a little too fast in some areas.

Tesla employs just under 100,000 people, but Musk said the cuts would equate to a reduction of around 3.5% because salaried workers make up around a third of the workforce, while Tesla is increasing the number of employees. employees it employs on an hourly basis, who represent approximately two-thirds of the workforce.

Musk’s outlook echoes comments from other executives, including JPMorgan boss Jamie Dimon, who warned this month that a “hurricane is right out there ahead of us.” US President Joe Biden reiterated on Monday that he believes a US recession is not inevitable, even as the world’s largest economy struggles to cope with high oil prices and inflation, which is at its highest level in 40 years. Former U.S. Treasury Secretary Lawrence Summers told NBC News on Sunday that he, too, expects a recession.

Musk also spoke about his $44bn (£36bn) bid to buy Twitter, which received formal approval from the social media company’s board on Tuesday.

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Musk said there were unresolved issues including the debt portion of the deal and the number of spam users. Lawyers representing the Tesla boss have warned he could walk away from the deal over a dispute over how Twitter calculates the number of fake or spam accounts on its platform.

“We are still awaiting a resolution on this issue, and it is a very important issue,” he said, reiterating doubts over Twitter’s claims that fake or spam accounts made up less than 5% of its 229 million daily active users.

Musk also expressed doubts about the deal’s debt financing, which is raised from a consortium of banks that have pledged $13 billion.

“And then, of course, there is the question of whether the debt part of the cycle will come together? And then will the shareholders vote for it?

Musk said he would like to have 80% of North America and half the world on Twitter. “My aspiration for Twitter is to be as inclusive as possible,” he said.

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