There's a history of visionaries predicting utopian scenarios including a greater share of leisure time as a result of automation. John Maynard Keynes famously predicted a 15 hour working week.
It's based on the idea that there's a certain amount of work that needs to be done, and once it's automated people have nothing to do. However, the work that really that "needs" to be done was automated away during the Agricultural Revolution in the 1700's and 1800's. 90% of the work we're doing now (and probably closer to 100% of slashdotters' work) doesn't *need* to be done, but we do it anyway.
What the visionaries don't take into account is that the top two levels of Maslow's Hierarchy of Needs don't work like the bottom two levels. The first small part of our work fulfils the basic needs like food water and shelter, then we carry on working in pursuit of higher needs, such as prestige and a sensation that we're fulfilling our potential. These needs are relative to what everyone else is accomplishing.
This is why people will carry on working long weeks long after automation takes away their manual labour jobs. In fact, automation has lead to longer working weeks, as manual labour is replaced with office work that can physically be done for longer. People will work for as long as they can to compete with their peers
Back to Elon's preiction. What will actually happen is that in the short term, people laid off as a result of automation will suffer and be angry, and in the long term the economy will adjust to the excess supply of cheap labour and invent new ways to use it, not necessarily as pleasant as the old manual jobs.