Analysis - Musk's warning could be auto industry's 'canary in the coal mine' moment

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 66%

United States News News

United States United States Latest News,United States United States Headlines

Tesla CEO Elon Musk's 'super bad feeling' about the economy could be the auto industry's 'canary in the coal mine' moment, signaling a recession for an industry whose bosses have shown no signs of concern.Musk said the electric carmaker needed to cut about 10 per cent of its workforce in an email to execu

Tesla CEO Elon Musk's"super bad feeling" about the economy could be the auto industry's"canary in the coal mine" moment, signaling a recession for an industry whose bosses have shown no signs of concern.

"Tesla's not your average canary in the coal mine. It's more like a whale in the lithium mine," Morgan Stanley analyst Adam Jonas said in a research note, referring to the metal used in EV batteries. Now supply-chain snarls, exacerbated by Russia's invasion of Ukraine, have dragged down sales. U.S. new-car sales in May finished at a weak annualized rate of 12.68 million, according to Wards Intelligence. That's a far cry from the glory days of 17 million a year pre-COVID."Risk of recession is high, so what he is saying certainly isn't extreme," Jeff Schuster, president of global forecasting at LMC Automotive, said of Musk.

"We're in a period of discombobulation, and frankly the financial world and the business leadership world don't agree," Sandbulte said."At some point, we'll get the answer who is correct." And industry officials also point out Tesla has its own issues, including possibly hiring too fast compared to its growth.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in US

United States United States Latest News, United States United States Headlines