Elon Musk has never shied away from divisive issues of discussion, and his viewpoint on the Federal Reserve is no different. Musk commented on the Federal Reserve’s move to decrease interest rates in 2009, following the U.S. recession of 2008, in a Tweet that has had over 19.8 million views.
In a subsequent Tweet, Musk stated, “The higher the rates, the worse the fall.” Musk cited a graph showing the declining rates over the previous 27 years. A follower said that Musk was fortunate that Tesla was able to re-secure an investor during the financial crisis.
True, the 2009 Daimler investment was what ultimately kept Tesla alive, he claimed. Ironically, the first commercially successful internal combustion engine car manufacturer also saved the first commercially successful electric car manufacturer.
After making a significant investment, Daimler AG bought a 10% share in the electric vehicle manufacturer, building on an earlier partnership in which Daimler tried to incorporate Tesla’s battery packs into its smart cars. Musk has already expressed his views on the fed and interest rates in the face of persistent inflation.
A Musk Twitter follower made an attempt to pin the blame for Tesla’s $600 million market valuation on the billionaire last month. Musk answered simply, “We don’t control the Federal Reserve. That is the actual issue at hand. By Monday afternoon, Tesla’s one-year performance had decreased by more than 64%.