Tue, 08 Apr 2025

Tue, 08 Apr 2025 Musk labels Trump trade adviser 'moron' over Tesla comments

Peter Navarro had described Musk's electric car company as a "car assembler" rather than manufacturer.
Elon Musk, CEO of Tesla and a member of the Trump administration, has publicly criticized President Donald Trump's trade adviser, Peter Navarro, calling him "a moron" for making false claims about his company. In an interview, Navarro had stated that Tesla is not a car manufacturer but rather an assembler, which Musk denies saying it's "demonstrably false". The dispute highlights the disagreement between the Trump administration and Musk over trade policies, with Musk hinting at opposition to White House tariffs. Musk points out that according to Kelley Blue Book, 70% of Tesla's parts are produced in the US. However, some analysts say that the company still sources a majority of its parts from outside the country, particularly China. The row is seen as the most public sign yet of disagreement between Trump's trade team and Musk. White House spokesperson Karoline Leavitt downplayed the dispute, saying "boys will be boys" and that the two individuals have different views on trade and tariffs. However, business owners and economists warn that the rapid change in US trade policy is causing uncertainty and disruption to operations. The Trump administration has justified its tariff policy by citing a need to revive manufacturing in the US. However, analysts say that Tesla is less exposed to tariffs compared to other US car makers like GM, Ford, and Stellantis. Despite his criticism of Navarro's comments, Musk has hinted at dissatisfaction with the overall trade policy, posting a video of Milton Friedman criticizing tariffs and stating that even his company would not be immune from disruption. Another Trump supporter, billionaire fund manager Bill Ackman, has also called for a pause on tariffs to stave off economic disruption. Navarro is seen as an ultra-Trump loyalist who was involved in the architecting of the tariff policy. The dispute highlights the tensions between the business community and the Trump administration over trade policies, with some CEOs reluctant to speak out publicly due to concerns about international partners' perceptions.
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