Elon Musk & Others Warn of Looming Auto Crisis
As the auto industry faces some of the harshest effects of the Federal Reserve’s rising interest rates to battle inflation, Tesla CEO Elon Musk and others are warning the public about the potential for a major financial crisis in the auto industry.
Musk tweeted that a delicate situation with auto loans could “potentially” become “the biggest financial crisis ever,” as detailed in a report from The Street. The warning came in response to a retweet of a post from Twitter account @CarDealershipGuy, a highly followed and well informed account claiming to be an anonymous car dealer group CEO.
CarDealershipGuy posted about monetary concerns following the Fed’s recent round of rising interest rates, which they say could create “the perfect storm” for consumers, dealers and lenders.
“This morning I discovered something *extremely* alarming happening in the car market, specifically in auto lending,” CarDealershipGuy said in a tweet. “I’m now convinced that there is a massive wave of car repossessions coming in 2023.”