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Elon Musk Says Recession Could Last 12 to 18 Months, But 'Actually a Good Thing'

Published 05/27/2022, 06:43 AM
Updated 05/27/2022, 10:48 AM
© Reuters. Elon Musk Says Recession Could Last 12 to 18 Months, But 'Actually a Good Thing'

By Sam Boughedda

Tesla (NASDAQ:TSLA) CEO Elon Musk stated late Thursday that we're approaching a recession, "but it is actually a good thing."

In a Twitter thread, a user asked Musk if he still thinks we are approaching a recession, to which he replied, "Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen."

"Also, all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!" he added.

The Covid pandemic accelerated the shift to more people working from home, while during lockdowns companies and individuals received stimulus payments.

Following his comments, another user asked Musk, who has a deal in place to acquire Twitter (NYSE:TWTR), how long he thinks the recession will last, to which he replied about 12 to 18 months based on past experience, adding "companies that are inherently negative cash flow (ie value destroyers) need to die, so that they stop consuming resources."

Latest comments

"Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen."  -- you mean like when Wall Street somehow valued a car company that never made money above $1 trillion?
i meant to say never made money until last year
 don`t like Mr Musk, so don`buy Tesla shares and twitter.   Something else.....?
maybe it's an good time to sell your tsla stock and buy twitter. Wait... oh wait, maybe we shouldn't be buying high pe marketing stocks at the start of an recession??
umm tsla, is negative cash flow after Elon's payout.
laughing, companies that have negative cash flows such as Tsla need to die. Umm, Elon after the 21.6? billion you were just paid Tsla has no earnings and is negative cash flow.
if it's about future earnings, then shouldn't we be concerned about future payouts larger then the future earnings? Why or why not??
i really admire people who listen to his stories.
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