Tesla’s shares have taken a nosedive for the fourth day in a row, and CEO Elon Musk hasn’t held back his criticism of President Donald Trump’s chief trade advisor, Peter Navarro. Musk, who holds the title of the richest person in the world, initiated his critique over the weekend by targeting Navarro on X, mocking his Harvard economics Ph.D. as more of a drawback than a credential. As the week rolled on, Musk’s comments only intensified.
By Tuesday, Musk had tweeted that “Navarro is truly a moron,” reacting to Navarro’s assertion that Tesla is merely a “car assembler” rather than a manufacturer. Musk dismissed Navarro’s remarks as “demonstrably false” and added an extra jab, calling him “dumber than a sack of bricks,” followed by a tongue-in-cheek apology to bricks. His criticisms culminated with a declaration that Navarro was “dangerously dumb.”
This public squabble marks the most visible rift among Trump’s inner circle since his presidency began. It also highlights a lack of consensus within the administration regarding the hefty tariffs Trump unveiled on Wednesday, affecting more than 180 countries and territories.
During a briefing on Tuesday, when questioned about this growing feud, White House Press Secretary Karoline Leavitt commented, “Look, these are obviously two individuals who have very different views on trade and on tariffs.” She added, “Boys will be boys, and we will let their public sparring continue.”
Adding to the debate, Musk’s younger brother Kimbal—who wears many hats as a restaurateur, entrepreneur, and Tesla board member—has voiced his discontent with the tariffs. On Monday, he critiqued them as a “permanent tax on the American consumer” and later took to X to describe the U.S.-China tension exacerbated by such policies as “not a game that should be played by C-minus students like Peter Navarro.”
For Elon Musk, the harsh words seem to connect directly to Tesla’s current struggles. The company’s stock has dwindled 22% over the past four trading days and halves its worth since the year started, wiping out over $585 billion in valuation. This represents a significant hit to Musk’s wealth, who also leads SpaceX and owns ventures like xAI and the social network X.
Despite earlier analysts’ beliefs that Tesla could endure these tariffs better than its peers—since its U.S.-sold vehicles are assembled domestically—the rising production costs due to tariffs on foreign materials and parts present a significant challenge. Canada, Mexico, and China supply vital resources like steel, aluminum, and printed circuit boards to U.S. automakers, including Tesla.
In a recent event with right-wing Italian Deputy Prime Minister Matteo Salvini, Musk shared that, ideally, the U.S. and Europe should eliminate tariffs to foster a free trade zone. His stance starkly contrasts with Trump’s current policy. Tesla’s substantial operations near Berlin and its collaborations with the European Commission on SpaceX launches underline Musk’s vested interest in the region’s trade relations.
Even before tariffs came into play, Tesla faced significant hurdles. Recently, the company announced a 13% decline in first-quarter deliveries compared to the previous year, missing analyst expectations. This came on the heels of Tesla’s worst quarterly stock performance since 2022.
In the political arena, Musk had shelled out around $290 million to bolster Trump’s re-election, later stepping into lead Trump’s Department of Government Efficiency, or DOGE, which has centered on reducing costs, cutting regulations, and trimming federal jobs. Tesla has also endured various protests and retaliatory actions linked to Musk’s political stance and his involvement with the Trump administration.
Correction: An earlier version of this story misstated the amount Musk contributed to Trump’s campaign.
Stay tuned as Brad Gerstner elaborates on his stance regarding Tesla.
