Speaking on Bloomberg earlier this morning, Elon Musk spoke in a infrequent interview on everything from Twitter to the state of the US economy.

The key points that we noted are:

  • Recession Risk – Musk said that a recession in the US is ‘more likely than not’, something that has been reflected by his desire to freeze hiring worldwide at Tesla and even bring about some potential staff cuts to the tune of 10% of the workforce.
  • Twitter Deal – his comments around the acquisition weren’t overly positive in our view. He spoke about the concerns around Twitter bots still, calling it a ‘very significant matter’. He also mentioned the size of the debt portion of the deal that he needs to collateralize against Tesla stock, which has fallen in value since the initial deal was announced.

Given that the US markets were closed due to the bank holiday yesterday, we expect some volatility today following the remarks on both Tesla and Twitter.

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