Biden lashes out at Musk’s ‘super bad’ forecast
‘Lots of luck on your trip to Moon,’ president tells Tesla chief after billionaire announces huge job cuts
JOE BIDEN delivered a withering presidential putdown to Elon Musk, wishing the billionaire “lots of luck on his trip to the Moon”.
It came after the Tesla boss said he had a “super bad” feeling about the global economy, and announced plans to cut one in 10 jobs at Tesla.
Mr Biden said: “While Elon Musk is talking about that, Ford is increasing their investment, overwhelmingly. I think Ford is increasing the investment in building new electric vehicles. Six thousand employees – union employees, I might add.”
The US president, speaking in Delaware, went on to tout investments being made in electric vehicles by Chrysler, and computer chips by Intel.
Mr Biden added: “So, you know … lots of luck on his trip to the Moon.”
Mr Musk responded to the comment on Twitter by saying: “Thanks Mr President!”
The billionaire also published a Nasa press release from April trumpeting the award of a $2.89bn (£2.3bn) contract to his company, Spacex, to build the lunar lander for America’s planned return to the Moon later this decade.
Mr Musk’s ultimate aim, rather than the Moon, is to colonise Mars and make humans a multi-planetary species.
The president’s statement was the latest development in a long-simmering feud. Mr Musk has previously accused Mr Biden’s administration of printing “a zillion more dollars than it has” and said that it “doesn’t seem to get a lot done”.
Last month, Mr Musk said he had voted Democrat in the past because “they were (mostly) the kindness party,” but claimed it had now become “the party of division and hate”.
He announced his intention to vote Republican instead.
Mr Musk ordered Tesla to cut 10pc of jobs worldwide yesterday. The electric carmaker’s chief executive also ordered an immediate hiring freeze at Tesla in an email to staff sent on Thursday, which was seen by Reuters.
US inflation is running at about 8 per cent, up from 5 per cent a year ago. The White House said that despite a recent slowdown “inflation is still too high”.
However, on Thursday, the US reported better-than-expected jobs growth in May, suggesting companies largely remain confident about the economy. Mr Musk has previously said the US was “probably” in recession, telling a conference in May: “It’ll probably be some tough going for a year, maybe 12 to 18 months.”
US employers added 390,000 jobs last month, fewer than the 436,000 added in April, but higher than economists had predicted.
The unemployment rate remained unchanged at 3.6pc, while labour force participation crept upwards. The leisure and hospitality sectors, which have struggled to recruit workers, also experienced “notable” gains, according to the US Bureau of Labor Statistics.
Some 100,000 staff are employed by Tesla around the world, according to its annual regulatory filings, meaning the company could lose around 10,000 posts if the 10 per cent headcount cut directive is carried out.
Tesla’s share price fell 8.5 per cent in the wake of Mr Musk’s directive, dipping to $708 in afternoon trade from its previous closing price of $775.
Mr Musk’s directive to shed 10pc of staff came after he told Tesla staff their current work from home arrangements are effectively over. Tesla has 5,000 vacancies worldwide posted on Linkedin at the current time.
Mr Musk has previously compared Mr Biden to film character Ron Burgundy, a witless newsreader in cult classic Anchorman. He has also mocked the president’s reliance on his teleprompter during public speeches.