Faced with a possible economic recession, certain bankruptcies are necessary, according to Elon Musk

Here is Elon Musk on a rather unexpected ground. In the sights of the American stock market policeman and accused by investors of having “manipulated the market” in the context of the takeover of Twitter, the billionaire used the social network once again to release one of these little controversial phrases of which he has the secret, relays BFM TV. The boss of Tesla first launched a poll on Twitter on May 27, asking: “Who do you trust the most?” He offered only two choices, between politicians or billionaires. After around 3.4 million votes, the results were final: 75.7% said they trusted politicians more, compared to only 24.3 for billionaires.

There followed an exchange with several Internet users, until one of them asked him if a tax on capital gains would one day be put in place. A “super bad idea”, according to Elon Musk, for whom “actions can switch from one day to another”. But he was in favor of eliminating “tax evasion” techniques. Then another man asks him if he thinks a recession may occur in the United States. The billionaire’s response is puzzling. After answering “yes”, Elon Musk adds: “Actually, that’s a good thing. It’s been raining money on fools for too long. Some bankruptcies have to happen.”

Tesla and SpaceX benefit from many aids

He then goes after the Covid aids that a lot of people have touched in recent months: “Also all the Covid stuff at home has got people thinking they don’t really need to work hard. The awakening will be harsh,” he says. For him, the recession could last between a year and a year and a half. However, as recalled BFM TV, Tesla and SpaceX, his two companies, have benefited from the abundance of liquidity in the past. Tesla’s stock market valuation also makes him the richest man on the planet. He had also benefited in 2009 from a vast refloating plan of 465 million euros to turn the company around.

Believing also that companies that have a negative cash flow must disappear, he was picked up on the fly by another Internet user, who replied that Tesla had been in this position in the past and that he behaved like a ” narcissistic”. Indeed, for the Guardian, Tesla was only profitable in 2020, and 2021 was the first full profitable year for the company. And it is also thanks to tax relief, in particular the resale of carbon credits. Finally, the billionaire’s other company, SpaceX, survives thanks to government support. The contract with NASA ($2.89 billion) and the one with the Air Force ($635 million) keep the company afloat. What to say to the Guardian that Elon Musk can attack as much as he wishes those who benefit from “gifts and loans”, he is however the first to benefit from them.

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