Elon Musk and Peter Navarro’s public feud over Trump’s tariffs intensifies as Tesla faces financial losses.

Elon Musk and Peter Navarro Lock Horns Over Tariff Policy

On April 9, 2025, a heated public spat between billionaire Elon Musk and White House trade advisor Peter Navarro has taken center stage, spotlighting deep divisions within President Donald Trump’s inner circle. The clash, rooted in Trump’s aggressive tariff strategy, has not only roiled global markets but also raised questions about Tesla’s financial future, with Musk attributing significant losses to the new trade policies.

The Spark: Musk Slams Navarro as Tesla Stock Plummets

The feud erupted when Navarro, a staunch advocate for Trump’s tariffs, dismissed Musk’s call for a "zero-tariff" trade zone between the U.S. and Europe. During a CNBC interview, Navarro labeled Musk a "car assembler" reliant on imported parts, questioning his authority on trade matters. Musk fired back on X, calling Navarro a "moron" and "dumber than a sack of bricks," while defending Tesla’s status as a leader in American-made vehicles.

The timing couldn’t be worse for Musk. Tesla’s stock has taken a nosedive amid market volatility triggered by Trump’s sweeping tariffs, including a 10% baseline levy on all imports and a staggering 104% duty on Chinese goods. Analysts estimate billions have been wiped off Tesla’s share price, with Musk’s personal net worth dipping below $300 billion this week.

Why Tariffs Are Hitting Tesla Hard

Tesla’s global supply chain, which relies heavily on components from countries like China, Japan, and Taiwan, has been directly impacted by the tariffs. While Musk has long championed free trade, arguing it fuels innovation in sectors like electric vehicles, Navarro insists the tariffs will revive U.S. manufacturing in cities like Akron and Flint. This ideological clash has put Musk at odds with Trump’s trade agenda, despite his initial alliance with the administration as a key advisor.

Musk’s brother, Kimbal Musk, joined the fray, blasting Navarro’s policies as a "permanent tax on the American consumer" and urging Trump to reconsider his trade team. The Musk brothers’ unified stance underscores the stakes for Tesla, which has seen sales plummet as costs rise.

White House Response: "Boys Will Be Boys"

As the war of words escalated, the White House downplayed the conflict. Press Secretary Karoline Leavitt shrugged off the feud during a briefing on April 8, stating, "These are two individuals with very different views on trade and tariffs. Boys will be boys, and we’ll let their public sparring continue." The nonchalant response has drawn criticism from observers who see the rift as a sign of disarray within Trump’s team.

A Broader Impact: Markets and Musk’s Empire

Beyond Tesla, the tariffs have sent shockwaves through global markets, with stock indices plunging to record lows. Musk’s outspoken criticism of Navarro comes as he juggles multiple ventures, including SpaceX and X Corp, all of which could face ripple effects from the trade war. Experts warn that prolonged tension could further erode investor confidence in Musk’s empire, already under pressure from Tesla’s declining performance.

The Musk-Navarro clash shows no signs of cooling down, with Musk reportedly appealing directly to Trump to reverse the tariffs, albeit unsuccessfully so far. As Navarro doubles down on his protectionist stance, Musk’s frustration highlights a growing divide between Trump’s "America First" loyalists and business leaders advocating for open markets.

For now, Tesla’s losses and Musk’s public outbursts signal a rocky road ahead. Whether this feud will force a policy shift in the White House or deepen the cracks in Trump’s inner circle remains to be seen. One thing is clear: the battle over tariffs has turned personal, and the fallout could reshape both Musk’s legacy and America’s economic landscape.

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