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Tesla’s stock downturn continued for a fourth consecutive day, prompting CEO Elon Musk to publicly criticize Peter Navarro, a key trade advisor to former President Donald Trump.
Musk, who is currently the richest individual in the world, began his critique of Navarro over the weekend. On X, Musk suggested that holding a “PhD in econ from Harvard is a bad thing, not a good thing,” a jab aimed at Navarro’s academic credentials. As the week progressed, Musk’s remarks became increasingly pointed and personal.
On Tuesday, Musk described Navarro as “truly a moron,” disputing Navarro’s assertion that Tesla merely functions as a “car assembler,” calling such statements “demonstrably false.” He further described Navarro with colorful language, stating he was “dumber than a sack of bricks,” before later retracting that comment in jest, apologizing to the bricks themselves. Musk further characterized Navarro’s intelligence as “dangerously dumb.”
This exchange marks one of the most visible disputes within Trump’s inner circle since the administration began on January 20, showcasing internal disagreement over the sweeping tariffs announced last week that affect over 180 countries and territories.
When queried about the altercation during a press briefing, White House press secretary Karoline Leavitt remarked, “These are obviously two individuals who have very different views on trade and on tariffs,” adding, “Boys will be boys, and we will let their public sparring continue.”
This heated exchange comes as Musk’s brother, Kimbal Musk — who serves on Tesla’s board and is known as an entrepreneur and restaurant owner — also joined the debate. Observers believe that the name-calling reflects Musk’s frustrations with Tesla’s current financial challenges.
Tesla’s share price has dropped 22% over the last four trading days and has seen a 45% decline this year alone. Since the start of 2023, the company has lost more than $585 billion in market capitalization, translating to significant paper losses for Musk, who oversees both SpaceX and the AI-focused xAI, in addition to Tesla.
Prior to implementing new tariffs, President Trump had already imposed a 25% tariff on vehicles not assembled in the U.S. Analysts previously indicated that Tesla’s domestic manufacturing could provide an advantage against competitors affected by these tariffs.
However, the tariffs on imported materials and components are expected to increase Tesla’s production costs. Among the most affected would be steel and aluminum, with Canada being the largest supplier of aluminum to the U.S., while key suppliers of printed circuit boards can be found in China and Mexico, both of which are critical to the automotive sector.
At a recent event with Italy’s right-wing Deputy Prime Minister Matteo Salvini, Musk advocated for a transition towards a “zero-tariff situation,” envisioning a free trade agreement between North America and Europe. This stance diverges sharply from the administration’s current trade policies and reflects Musk’s interests in maintaining robust economic ties, particularly given Tesla’s significant manufacturing operations in Berlin.
Tesla’s challenges extend beyond tariffs. The company reported a 13% decrease in year-over-year deliveries for the first quarter, falling short of analysts’ forecasts — this disappointing report arrived just as Tesla’s stock posted its worst quarterly performance since 2022.
Moreover, Musk, who previously invested around $290 million to support Trump’s 2024 campaign, is now managing the Department of Government Efficiency, or DOGE. This department has undertaken measures to reduce costs and streamline regulations, resulting in significant federal job cuts. Concurrently, Tesla has faced protests, boycotts, and even some criminal incidents targeting its vehicles and facilities, likely in response to Musk’s political involvement and public remarks.
Correction: A prior version of this story included an inaccurate figure regarding Musk’s financial contributions to the Trump campaign.
WATCH: Brad Gerstner elaborates on his position regarding Tesla.
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