Key facts
- Elon Musk believes money will become irrelevant by 2036 due to AI and robotics.
- He predicts deflation will be a key economic challenge.
- Musk's net worth has decreased by approximately $700 billion.
- SpaceX stock has fallen nearly 50% from its peak.
- Tesla's stock saw a 19% weekly decline following an earnings miss.
Tech mogul Elon Musk has stated that money will become irrelevant by the year 2036, attributing this shift to advancements in artificial intelligence and robotics. In an interview with The Economist, Musk explained that if AI and robots can produce more goods and services than humans can consume, the need for money will diminish, potentially leading to deflation.
Musk's comments come at a time when his personal fortune has seen a significant decline, reportedly losing nearly $700 billion. This reduction in his paper wealth is largely due to substantial drops in the stock prices of his companies, Tesla and SpaceX, over the past five weeks.
SpaceX experienced a particularly sharp downturn, with its stock falling almost 50% from its peak. This decline was reportedly exacerbated by a delayed Starship launch and a broader selloff in AI-related companies. Tesla also faced a slump, with its stock dropping around 19% for the week following an earnings report that missed consensus estimates for earnings per share, despite exceeding revenue expectations and delivering a record number of vehicles.
Despite the market volatility and his own fortune's decrease, Musk acknowledged the profound uncertainties surrounding AI, expressing a sentiment that has shifted from exhilaration to terror. Cathie Wood, however, remained optimistic about Tesla, purchasing over $51 million worth of its shares during the recent dip.