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."
Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen.
— Elon Musk (@elonmusk) May 27, 2022
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!