Elon Musk sold Tesla stock to free up cash in case 'worst-case scenario' strikes. Here's why he's worried | Business Insider

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.

BISouthAfrica In case disaster strikes? Definitely knows something many don't. The world cup had ended... What follows with be harder tnan expected.

الإمارات العربية المتحدة أحدث الأخبار, الإمارات العربية المتحدة عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Elon Musk said Twitter is like a crashing plane with its 'engines on fire' | Business InsiderIn a Twitter Spaces, Elon Musk also said advertisers asked 'hard questions' about the return on investment because of the declining economy.
مصدر: BISouthAfrica - 🏆 34. / 51 اقرأ أكثر »

Elon Musk touts beaten-down Tesla stock as a potential bargain and blasts the Fed for interest-rate hikes | Business InsiderMusk said the Tesla selloff might be a 'buying opportunity,' and blasted the Fed's inflation fight as prices appear to be falling already.
مصدر: BISouthAfrica - 🏆 34. / 51 اقرأ أكثر »