Musk said that the US economy was probably in a recession and warned companies to watch costs and cash flows.
According to a live-streamed video of Musk's remarks, he said these things pass and then there will be boom times again.
The Federal Reserve is trying to cool down inflation that is running near its hottest pace since the early 1980s, which has caused recession fears to grow. According to the latest survey of economists, the odds of a downturn in the coming year are 30%.
The US economy contracted in the first quarter due to a record trade deficit. Business investment in equipment and consumer spending quickened at the start of the year. The Federal Reserve Bank of Atlanta has a GDPNow estimate for the second quarter.
Musk made comments on the economy and politics as part of a wide-ranging video appearance at the technology conference. He's in the middle of a $44 billion takeover attempt to buy the social-media company.
Musk said that he has been through a few recessions in his time at public companies.
If you have a boom that lasts too long, you get misallocation of capital, and it starts raining money on fools.
Musk said that the rising prices had been caused by simply money printing. The two richest people in the world are Musk and Bezos.
The reason for inflation is that the government printed a lot of money, Musk said.
Musk is a moderate who has voted with Democrats in the past, but he doesn't like the administration of US President Joe Biden. He chided the president for downplaying the role of electric vehicles.
It doesn't seem to get a lot done, and Musk thinks immigration policy needs to be addressed.
Musk said he could change his mind in the next election, even though he might never vote for a Republican again.
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