SpaceX (NASDAQ:SPCX) and Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said Tuesday that short-term economic setbacks are inevitable but argued that artificial intelligence and robotics will drive a powerful long-term economic growth.
Musk Pushes Back On AI Crash Thesis
Musk was responding to technology commentator Robert Scoble on X, who shared an article by a Silicon Valley venture capitalist arguing that an eventual AI market crash would be a necessary step toward a long-term technological boom.
“There are always momentary dips, even in a rapidly growing economy,” Musk said.
He added that the productivity gains from AI and robotics are “so enormous” that “the macro trend is overwhelmingly up.”
Musk has repeatedly described AI and humanoid robots as key drivers of long-term economic growth, with Tesla investing heavily in its Optimus robot program and autonomous driving technologies.
AI Spending Debate Intensifies
Vijay Pande, co-founder of venture capital firm VZVC, said in his article that previous technological revolutions experienced speculative bubbles and market corrections before entering prolonged periods of growth.
He added that the AI boom and any eventual correction were part of the same cycle, with the infrastructure built during the expansion laying the foundation for a later “golden age” of innovation.
Earlier this month, Bridgewater Associates founder Ray Dalio said rapid gains in AI-related stocks resembled previous technology bubbles.
Musk Continues To Bet Big On AI
Musk’s comments reflect his broader AI strategy, with xAI expanding the computing infrastructure behind its Grok models and SpaceX benefiting from growing demand for AI-related satellite connectivity and launch services.
Technology companies have continued investing hundreds of billions of dollars in AI chips and data centers despite growing investor concerns over the pace of spending.
Earlier this month, Goldman Sachs warned that rising AI infrastructure costs could pressure profitability before those investments are fully monetized.
Price Action: SpaceX, which made its historic market debut on June 12, is up 6.16% so far. On Tuesday, the stock closed 4.06% to $170.86, and gained 0.89% in extended trading.
Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: IAB Studio on Shutterstock.com
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