Tesla CEO Elon Musk spoke on the firm's earnings call with some remarks on the economy.
This snippet is worth reproducing in full, it's a bit micro but there are a lot of micro factors like this right now hitting the macroeconomy:
“I just can’t emphasize this enough that for the vast majority of people buying a car is about the monthly payment. And as interest rates rise, the proportion of that monthly payment that is interest increases naturally. So, if interest rates remain high or if they go even higher, it’s that much harder for people to buy the car. They simply cannot afford it,”
Musk went on:
- Economic uncertainty, global events like wars, can also weigh on consumer confidence
And tried to finish on an upbeat note:
- “I’m not saying things will be bad. I’m just saying they might be.
- "Tesla is an incredibly capable ship, but we need to make sure like if the macroeconomic conditions are stormy, even the best ship is still going to have tough times”
