Elon Musk says China is in ‘kind of a recession’

”China is experiencing a kind of recession” mainly in the real estate market, Musk, chief executive of the electric carmaker, said during a third-quarter earnings call on Wednesday US time.

Musk was responding to a question about recent order revenue trends, particularly in China, where Tesla has a large factory.

For its part, Europe is facing a recession caused by energy shortages, while the United States is in good shape, Musk said, adding that while the Federal Reserve is raising interest rates “more than i should“, believes that “eventually they will figure it out” and will lower them again.

China’s economy nearly stalled in the second quarter due to lockdowns in major cities, including Shanghai. During that city’s months-long lockdown, factories, including the Tesla plant, were forced to suspend operations for several weeks.

Since then, China’s recovery has remained fragile as COVID outbreaks and restrictions continue to weigh on activity and demand. The slump in the country’s housing market has also dampened confidence and reduced demand for everything from basic goods to loans.

Economists surveyed by Bloomberg forecast that the economy posted 3.3% growth in the third quarter. That data was due to be published on Tuesday, but the country’s statistics authority postponed its release, an unusual move that occurred at the same time as the Communist Party’s congress, which takes place every five years, is convened.

Property investment for the first nine months of the year is forecast to have declined 7.5% from a year earlier. Growth over a similar time period before the pandemic had exceeded 10%.

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