Tesla (TSLA, Financial) CEO Elon Musk isn't holding back in his latest clash with Washington. This time, he's going after Peter Navarro, President Trump's top trade adviser, following some pointed criticism of Tesla's manufacturing practices.
Navarro recently downplayed Tesla's role as an automaker, calling it more of an “assembler” that leans heavily on parts from overseas — places like China, Japan, and Taiwan. He also shrugged off Musk's long-standing call for zero tariffs between the U.S. and Europe, calling it self-serving.
Musk responded with a string of posts on X, calling Navarro “truly a moron” and “dumber than a sack of bricks.” He pushed back on the idea that Tesla isn't a true manufacturer, arguing that the company builds the most American-made cars in the country and has one of the most vertically integrated operations in the industry.
Most of its production, he added, happens in California and Texas with plenty of U.S.-sourced content. Musk even took a swipe at Navarro's Harvard credentials, implying they inflated his ego.
Beyond the personal jabs, this feud highlights a broader divide between the White House and the business community when it comes to tariffs. Musk has long favored open trade and minimal barriers, while Navarro and others argue tariffs are necessary to protect domestic manufacturing — especially in states like Michigan and Indiana.
And business leaders are sounding the alarm. A CNBC survey shows that 69% of CEOs think the tariffs could push the U.S. into a recession, and over a third are already planning job cuts.
As for Tesla's stock, it gained more than 4% in Tuesday afternoon trading, riding the wave of a broader market rally. Still, the stock remains down around 40% for the year.
