By Sam Boughedda
Tesla (NASDAQ:) CEO Elon Musk said late Thursday that we’re approaching a recession, “but that’s actually a good thing.”
In a Twitter thread, one user asked Musk if he still thinks we’re nearing a recession, to which he replied, “Yeah, but that’s actually a good thing. It’s been too long as it rains money on fools. Some bankruptcies must take place.”
“Plus, all the Covid stay-at-home stuff has made people believe there’s no need to work hard. Rude awakening ahead!” he added.
The Covid pandemic has accelerated the shift to more people working from home, while during lockdowns businesses and individuals have received stimulus payments.
Following his comments, another user asked Mr. Musk, who struck a deal to acquire Twitter (NYSE:), how long he thought the recession would last, to which he replied about 12 to 18 months based on past experience, adding that “companies that are inherently cash flow negative (i.e. value destroyers) must die, so that they stop consuming resources “.