Elon Musk’s frustration with President Donald Trump’s top trade advisor, Peter Navarro, has boiled over as Tesla’s stock continues to suffer significant losses. The world’s richest person took to social media over the weekend to slam Navarro, calling his Harvard economics degree a “bad thing, not a good thing,” setting the tone for a public feud that escalated throughout the week.
Musk’s attacks on Navarro reached a peak on Tuesday, with the Tesla CEO labeling Navarro “truly a moron” and “dumber than a sack of bricks,” after Navarro suggested that Tesla is more of a “car assembler” than a car manufacturer. Musk also mocked Navarro with a sarcastic apology to bricks. The outbursts have highlighted a growing rift within the Trump administration, as the president’s tariffs continue to spark disagreements even among his closest allies.
When asked about the spat, White House Press Secretary Karoline Leavitt dismissed it as a typical difference of opinion between two individuals, stating, “Boys will be boys, and we will let their public sparring continue.”
Musk’s brother, Kimbal Musk, has also joined in the backlash, criticizing Trump’s tariffs as a “permanent tax on the American consumer” and calling out Navarro for his approach to the trade war.
Tesla’s Stock Struggles Amid Rising Tariffs
Tesla’s stock has dropped a staggering 22% in the last four trading sessions, continuing its 45% loss for the year. This downturn has erased over $585 billion in value from the company, severely affecting Musk’s financial standing. The root of Tesla’s struggles can be traced to increasing production costs due to new tariffs on materials and parts imported from foreign suppliers like Canada, Mexico, and China.
While Tesla’s U.S.-assembled vehicles have somewhat shielded the company from President Trump’s 25% tariff on non-U.S. assembled cars, the broader impact on production costs is undeniable. Tesla’s reliance on steel and aluminum from Canada and Mexico, as well as circuit boards from China, is driving up expenses.
Despite his advocacy for a tariff-free zone between Europe and North America, Musk faces a bleak outlook in the wake of the tariff escalation. Tesla’s global deliveries also fell short, with a 13% year-over-year decline in the first quarter. This disappointing performance, combined with growing protests and boycotts sparked by Musk’s political rhetoric, has intensified the pressures on both his business and his political ties.
What The Author’s Think
Elon Musk’s engagement in political matters seems to be coming at a cost to Tesla. His outspoken support for certain political ideologies and involvement in Trump’s administration has sparked controversy, affecting the company’s public image and market performance. While Musk’s aggressive stance on trade policies and his attempts to navigate through complex international relationships might serve his personal interests, they seem to have alienated a portion of Tesla’s consumer base. The question remains whether his political ventures will continue to overshadow Tesla’s core mission or whether the company can recover from these growing tensions.
Featured image credit: Heute
Follow us for more breaking news on DMR