This week, tensions rose between Tesla CEO Elon Musk and President Trump’s trade advisor, Peter Navarro, turning into a public argument over the administration’s new taxes on imported goods. The disagreement started when Navarro, in an interview on CNBC, said that Tesla isn’t really a “car manufacturer” but more of a “car assembler” because it uses many parts made in other countries.
This went against Tesla’s image as a leader in American manufacturing, since its cars are put together in California and Texas. However, Navarro pointed out that while Tesla does final assembly in the U.S., many of the parts come from places like Mexico, China, and Japan. Musk quickly fired back on X (formerly Twitter), using strong language to disagree with Navarro. He called Navarro “truly a moron” and said his claims were completely wrong.
Musk argued that Tesla actually uses more American-made parts than any other car company in the U.S. and stressed how much of its production happens in-house. He also used other insulting words to show how much he disliked Navarro’s comments.
Musk and Navarro attacking each other again during Tarrifs
This public fight highlights the different views on President Trump’s new tariffs, as reported by The Hill, which include a 25% tax on imported cars that started earlier this month. The administration says these taxes will encourage foreign car companies to move production to the U.S., creating more American jobs. However, Musk argues that the tariffs hurt companies like Tesla, which, even though they make a lot of their products in the U.S., still depend on parts from around the world.
Tesla’s stock price dropped 19% after the tariffs were announced, which Musk says proves his point about the harm they cause. Tesla had already warned that it could be hurt by other countries putting taxes on U.S. goods in response.
Another part of the conflict is Musk’s push for no tariffs at all between the U.S. and Europe, which is the opposite of Navarro’s support for trade protections. Musk suggested creating a free trade zone between North America and Europe during an event with Italy’s right-wing League party. Navarro, who has long been against free trade deals, rejected Musk’s idea, saying the CEO “doesn’t understand” how complicated international trade is.
Navarro argued that Musk’s position was just about helping Tesla, since the company relies on foreign parts and would be hurt by the tariffs.
Even though the argument got heated, Navarro tried to make it seem less serious. He said there was “no rift” and that while Musk was free to share his opinions, people should know that Musk’s views are influenced by his own financial interests and protecting Tesla’s business.
Published: Apr 8, 2025 12:00 pm