Elon Musk predicted an economic downturn in the United States

DOHA, June 21 (Reuters) – Tesla CEO Elon Musk (TSLA.O)he said a 10% cut in paid employees at the electric car maker would happen over three months, as the world’s richest man predicted an economic recession in the United States was more likely than others.

His notes were his most detailed explanation of his layoff plans and his first personal appearance since then Reuters reported At the beginning of this month, the company needed to cut staff by about 10% and was temporarily halting hiring worldwide.

Speaking at the Qatar Economic Forum organized by Bloomberg, Musk said that the cuts will only apply to wage earners, which means a 3.5% reduction in the total number of employees, changes he described as “not substantial.”

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But he expressed concern about the possibility of an economic recession in the United States.

“It’s not certain, but it seems more likely than not,” he said.

Musk’s view mirrors comments from executives, including JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs chairman John Waldron. “There’s a hurricane on the road coming our way,” Damon He said early this month.

Whether the United States will enter Recession It was a growing concern for CEOs, the Federal Reserve and the Biden administration.

US President Joe Biden reiterated Monday that he feels a US recession is not inevitable, even as the world’s largest economy struggles to tackle high gasoline prices and inflation, which are at their highest levels in 40 years.

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Former US Treasury Secretary Lawrence Summers told NBC News on Sunday that he expects a recession to occur.

In a June 2 email seen by Reuters, Musk told Tesla executives that he had a “very bad feeling” about the economy and that the company needed to cut staff about 10% and “stop all hiring around the world.” Temporarily.

On Tuesday, he said that Tesla expects to increase the number of hourly wage workers versus fixed salaries.

Elon Musk arrives at the exhibition In America: An Anthology of Fashion-themed Met Gala at the Metropolitan Museum of Art in New York City, New York, US, May 2, 2022. REUTERS/Andrew Kelly

He also said that he was a stickler for the digital currency and intended to provide personal support to Dogecoin.

The digital currency has been very volatile this year, but bitcoin rallied after Tesla announced in February of last year that it had bought $1.5 billion in the currency and for a short time accepted it as a vehicle payment.

Unresolved “a very important issue” in the Twitter deal

Elon Musk also talked about trying to buy Twitter (TWTR.N)which Forbes reported earlier this month had agreed to buy it for $44 billion.

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

“We are still waiting for a resolution on this matter, and this is very important,” he said, reiterating doubts about Twitter’s claims that false accounts or spam account for less than 5% of monetized daily active users.

“And then of course, there’s the question, will the debt portion of the round be grouped 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.

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

The most important thing, he said, is to take the company in the right direction, as is the case with his own rocket company, SpaceX and Tesla.

“Whether I am the CEO is far less important than my ability to lead the product in the right direction,” he said.

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Additional reporting by Nadine Awadallah in Dubai and Hyunjoo Jin in San Francisco. Written by Saeed Azhar. Editing by Jason Neely and Barbara Lewis

Our criteria: Thomson Reuters Trust Principles.

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