Elon Musk has predicted that money will lose its relevance by 2036, arguing that artificial intelligence and robotics will create such abundance that currency becomes unnecessary. The world's richest man made this bold claim during an interview with The Economist's editor-in-chief, Zanny Minton Beddoes, even as his personal net worth collapsed by nearly $700 billion in just over five weeks.

What Would a Post-Money Economy Actually Look Like?

Musk's vision centers on a fundamental economic shift driven by AI and automation. He argued that money primarily serves as a tool to acquire goods and services like food and housing. Once AI-driven production makes those essentials essentially unlimited, the underlying need for currency would diminish substantially. In this future, he suggested governments would provide "universal high income" rather than the more commonly discussed universal basic income, directly issuing payments to citizens as automation reshapes the labor market.

When pressed about inflation concerns, Musk rejected the idea that increasing the money supply would necessarily trigger price increases. He argued that inflation depends on the balance between money supply and the availability of goods and services. If AI-driven production dramatically expands the overall supply of goods and services, governments could increase the money supply without triggering meaningful inflation. Musk went further, suggesting that deflation, not inflation, would become the more pressing economic challenge if production outpaces growth in the money supply.

How Does Musk's Timeline Compare to His Current Financial Reality?

The timing of Musk's remarks added an unusual layer of irony to his predictions. Musk briefly became the world's first trillionaire following SpaceX's initial public offering, with his paper wealth reaching approximately $1.45 trillion on June 16, when SpaceX's market value climbed to roughly $2.64 trillion. However, his estimated net worth has since fallen to around $738 billion as of July 23, according to the Bloomberg Billionaires Index.

The bulk of that decline stems from a dramatic slide in SpaceX's stock price. Shares in the company, which trade under the ticker SPCX, have fallen nearly 50 percent from their June 16 peak of $225.64, closing at $115.07 on July 24. That drop has erased roughly a trillion dollars in SpaceX's market capitalization since its post-IPO high. The stock's decline accelerated following a delayed Starship launch on July 16, compounded by a broader selloff among AI-related companies as initial post-IPO enthusiasm cooled. SpaceX shares fell for seven consecutive trading sessions, closing below their IPO price during that stretch.

Tesla shares also weighed on Musk's overall net worth following the company's latest earnings report. Tesla posted second-quarter revenue of $28.24 billion, beating analyst expectations by more than 7 percent, and delivered a record 480,126 vehicles during the quarter. However, adjusted earnings per share came in at $0.33, falling well short of the $0.5367 consensus estimate, a miss of more than 38 percent. The disappointing profit figures contributed to a roughly 19 percent weekly decline in Tesla shares, which closed at $313.03 on July 24.

Steps to Understanding Musk's Economic Vision

• AI and Robotics Abundance: Musk predicts that rapid advances in artificial intelligence and robotics will fundamentally reshape how the global economy functions, making goods and services essentially limitless.
• Universal High Income Model: Rather than traditional universal basic income, Musk suggests governments would directly issue payments to citizens as automation eliminates traditional jobs.
• Deflation Over Inflation: Musk argues that if AI-driven production dramatically expands the supply of goods and services, the greater economic risk would be deflation rather than inflation.

The Economist's editor-in-chief pushed back on Musk's prediction during the interview, pointing out the apparent tension between his forecast and the market value of his own companies. "I'm not sure that the people who bought your shares think that money won't matter," Beddoes said, challenging Musk to explain how Tesla and SpaceX would continue generating revenue in a future where money supposedly carries little significance.

Does Musk Actually Believe in His Own Timeline?

Despite his optimistic framing of an abundant AI-powered future, Musk also acknowledged significant uncertainty and personal ambivalence about the technology's trajectory. Describing his own shifting views on artificial intelligence, Musk said, "I've gone from exhilaration to terror regarding AI," a comment that underscored the tension between his enthusiasm for AI's potential and his stated concerns about its risks. He also weighed in on the global competitive landscape, suggesting China has a strong chance of eventually dominating AI development given the scale of computing resources the country could bring to bear, even as Chinese firms have already shown they can achieve results with comparatively limited computing power.

Musk

Not all investors have reacted negatively to the recent market pullback. Prominent fund manager Cathie Wood, known for her bullish long-term stance on Tesla, purchased more than $51 million worth of Tesla shares during the recent dip, signaling continued confidence in the company's trajectory despite the earnings miss.

Musk's comments about money losing relevance by 2036 have drawn both interest and skepticism from economists and commentators, many of whom note the significant gap between Musk's sweeping predictions about AI-driven abundance and the practical, near-term financial realities facing his own companies. Whether Musk's long-term vision of a post-scarcity economy comes to pass remains deeply uncertain, but for now, the sharp decline in his personal fortune has added an unusual layer of context to his latest remarks about a future in which, in his view, money itself may eventually cease to matter.