Hit the brakes IMMEDIATELY or there will be a huge disaster, says Elon Musk
You could say that Elon Musk is "just" a businessman and has little say in the economy and politics. But the influence of the richest man on the planet is enormous and his words carry a lot of weight. This time, he's coming down hard on the Fed. What did he say?
Federal Reserve Chairman Jerome Powell said on Wednesday that the Federal Reserve will raise rates beyond initial expectations and keep them at that level for an extended period of time. They want to do so to fight extreme inflation. That has been curbed, at least a little, but not in the way the Fed seems to have imagined.
Powell said the Fed is trying to raise the prime rate by enough to slow the economy, hiring and wage growth, but not enough to send the US into recession. Noble thought. But according to many, they are not succeeding. And there are even many voices that say they are doing the opposite. Take Elon Musk, who said so on…
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Tesla Inc's second-largest market - accounted for about two-thirds of all electric vehicles sales globally in 2022 - and the home of Tesla's biggest plant.
It's also a market that has embraced EVs and is replete with rivals competing on style and price, including Xpeng, Nio and BYD Co Ltd.
Releasing financial results on Wednesday, Tesla said they showed recent deep price cuts were stimulating demand, and that the company is cutting costs with a view to growing through what Musk expects will be a recession this year.
Asked about Tesla's competition, Musk responded that he respected car companies in China, calling it the most competitive market in the world. Musk did not identify any Chinese automakers by name.
"They work the hardest and they work the smartest," he said. "And so we guess, there is probably some company out of China as the most likely to be second to Tesla."
Tesla recently promoted China chief Tom Zhu to run U.S. factories and sales in North America and Europe, Reuters has reported.
"Our team is winning in China. And think we actually are able to attract the best talent in China. So hopefully that continues."
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