Elon Musk's dual prediction before 2026! AI will eliminate the need to store money, and fuel-powered cars are destined to disappear

Elon Musk, the world’s richest person, has made a shocking prediction that in the future there will be no more poverty, and therefore saving money will also lose its meaning. At that time, an era of high income for all will inevitably arrive. Musk believes there is an 80% chance that AI and robotics technology will eliminate the necessity of work, creating a universally high income level. On the same day, Musk predicted that non-autonomous fuel-powered cars will become as obsolete as flip phones used during horse riding, and they will only stubbornly disappear.

Utopian Vision of an Era of High Income for All

Musk’s argument that “saving money will lose its meaning” is based on his highly optimistic outlook on AI and robotics technology. He elaborated on this vision in detail at the Viva Tech Conference in Paris last May. When asked if he was worried about AI taking over jobs, he said: “In an ideal scenario, perhaps none of us will need to work anymore. The future will realize ‘high income for all’—not ‘basic income for all,’ but ‘high income for all.’ Goods and services will no longer face shortages.”

At that time, Musk stated he believed there was an 80% probability that AI would bring about such a scenario: humans will no longer need to work and will possess everything they need. The logical chain of this prediction is: AI and robots take over all production activities → productivity increases by hundreds or thousands of times → goods and services become extremely abundant and costs approach zero → everyone can access sufficient material supplies → poverty disappears, and the concept of income changes.

“By then, the real question will focus on ‘the meaning of life’—if computers and robots can do everything better than humans… then what meaning does your life have? This will be the true question in an ideal scenario. And in a pessimistic scenario, everything becomes uncertain; we might fall into huge trouble,” Musk added.

Three Pillars of Musk’s Vision of an Era of High Income for All

AI eliminates the need for labor: Artificial General Intelligence (AGI) and humanoid robots take over all physical and mental labor

Explosive growth in productivity: Automation drives goods and services costs toward zero, creating an extremely rich material foundation

Work becomes a hobby: People will find any work optional; work itself becomes a form of hobby

While this vision is beautiful, it faces multiple doubts. First, when will AI and robotics reach this level? Musk himself admits there is a 20% chance of a pessimistic scenario. Second, even if the technology is achieved, how will wealth distribution be addressed? If ownership of AI and robots is concentrated in a few tech giants, it could lead to even more severe wealth disparity. Third, can human society adapt to a “no work” state? Work not only provides income but also offers identity, social relationships, and life purpose.

Disdain for Non-Autonomous Fuel Cars as Flip Phones in the Horse Era

On December 17, Musk posted another message: “Many years ago, I said that non-autonomous fuel cars are like flip phones used during horse riding, but you can’t force good ideas onto traditional industries. They will only stubbornly disappear.” This metaphor is vivid and carries a strong disdain.

The absurdity of using flip phones during the horse era lies in the mismatch of times. Musk implies that once autonomous driving technology matures, continuing to drive non-autonomous fuel cars is like still riding horses in the car age or using flip phones in the smartphone era—resisting technological progress. This statement is highly aggressive, positioning traditional car companies and their users as “lagging behind.”

The timing of this remark is very precise. On December 15, local time, Ford announced that due to lower-than-expected market demand, high costs, and regulatory changes, it would decisively adjust its electric vehicle strategy, canceling some large EV projects. Ford will officially cease production of the F-150 Lightning electric pickup, which has been in production for less than four years, and replace it with a range-extended version. The next-generation all-electric pickup and the planned 2028 launch of the next-generation electric van project were also halted.

This strategic adjustment will cost Ford about $19.5 billion. Of that, $500 million will be for asset impairments in the EV division, and about $6 billion related to dissolving the battery joint venture. This huge loss demonstrates Ford’s struggles in its electrification transition. Musk clearly sees this as evidence of traditional car companies “stubbornly disappearing.”

However, Musk’s argument overlooks a key detail: the reason for Ford’s strategic adjustment is not that electrification is wrong, but that “market demand is below expectations.” Currently, EV penetration in the US is about 7-8%, far from mainstream adoption. Consumer resistance to EVs is due to practical issues like insufficient charging infrastructure, range anxiety, and high prices, not blind rejection of technological progress.

Musk emphasizes that the core is “autonomous driving,” not “electric vehicles.” When responding to online comments, he said: “Exactly.” The commenter pointed out that Ford still believes the reason for producing EVs is to reduce emissions, which reflects a limited understanding of the current automotive transformation; reducing emissions is just a side effect. Fundamentally, EVs are a better platform for autonomous driving.

This perspective reveals Musk’s core disagreement with traditional car companies. Traditional automakers see electrification as a transformation driven by environmental concerns, while Musk views it as the technological foundation for achieving autonomous driving. The electronic architecture, drive-by-wire chassis, and precise power control of EVs indeed make them more suitable for autonomous driving than fuel cars. From this angle, the demise of fuel cars is not due to environmental policies but an inevitable result of technological evolution.

Tesla Robotaxi No-Safety-Driver Testing and New Market Cap High

Musk’s predictions are not just empty talk but are supported by actual progress. On December 15, Musk confirmed that Tesla has begun testing autonomous taxis without safety drivers. In June this year, Tesla launched its Robotaxi service in parts of Austin, Texas, initially with safety monitors in the front passenger seat. Now, removing the safety driver marks a significant boost in Tesla’s confidence in its autonomous driving technology.

Capital markets remain optimistic about autonomous driving. Tesla’s stock price rose on December 15 and 16. As of the close on the 16th, Tesla’s stock price was $489.88, with a total market value of about $1.63 trillion, setting a new all-time closing high. Although the stock pulled back 4.62% to $467.26 on the 17th, this correction appears more like profit-taking rather than a trend reversal.

In fact, at the policy level, Europe and the US are slowing down the EV transition process. The US previously relaxed emissions regulations. On the evening of December 16, the European Commission announced a new proposal to cancel the 2035 ban on selling fuel cars. This policy shift is favorable to traditional automakers, but Musk believes it cannot change the fate of fuel cars’ disappearance, as technological progress far exceeds policy intervention.

These two Musk predictions—AI ending the need to save money and non-autonomous fuel cars becoming obsolete—though seemingly independent, are actually interconnected logically. Both point to the same future: technological progress will fundamentally change how human society operates, and the old economic logic (saving, working, driving) will be overturned. This vision is radical and controversial, but Musk is demonstrating its feasibility through Tesla’s actual actions.