that if higher interest rates are compounded by a serious recession, he and his companies could suffer.
The higher cost of borrowing effectively increases the price of cars, meaning manufacturers have to cut prices to keep customers or bring more in, Musk said. As a result, rate increases tend to temper demand and eat into automakers' profits, which can weigh on their stock prices. As well as pointing to rates, Musk warned a severe recession would hammer sellers of big-ticket items bought on credit. In tough times, consumers will stop buying those products before giving up staples, he said.
You can't believe anything this guy says.
Once upon a time a carmaker called Tesla……
He sold Tesla because he believed it to be overpriced.
Tsla $30?
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Elon Musk: Tesla stock may be a bargain, Fed has hiked rates too muchElon Musk touts beaten-down Tesla stock as a potential bargain - and blasts the Fed for going overboard with interest-rate hikes The fed is not the problem. Elmo trashed his brand. Also, there is this... Not only has he publicly trashed his reputation the public has finally realized his cars are trash Right...right. It's the Fed. Couldn't possible his unhinged Twitter rants while ignoring the company making self combusting cars that run over people on their own.
Source: BusinessInsider - 🏆 729. / 51 Read more »