Tesla stock (TSLA) rose 2.3% to $227.30 in early Wednesday trading after a chaotic 24 hours that saw Elon Musk publicly slam President Trump’s top trade advisor, Peter Navarro. The stock’s bounce came despite the S&P 500 and Dow both falling—making the rally even more unusual given how tightly Tesla has traded with the broader market since tariffs kicked in. But what really lit up investor chatter was the spat behind the scenes.
Musk Clashes With White House Trade Voice
Navarro, one of the architects of Trump’s aggressive tariff policy, appeared on CNBC this week and took a jab at Tesla’s global supply chain. He claimed Musk is “not a car manufacturer, he’s a car assembler,” pointing to Tesla’s international parts sourcing—something Navarro wants to curb under the administration’s America First strategy.
Musk fired back fast. In a sharp post on X, he said, “Navarro is truly a moron. What he says here is demonstrably false.” Musk also defended Tesla’s domestic footprint, pointing out that roughly 65% of the company’s components are U.S.- or Canada-sourced—enough to keep it ranked among the most American-made vehicles, according to Cars.com.
Tariff Turmoil Tests Tesla’s Staying Power
Tuesday’s wild price action reflected more than just social media drama. Tesla shares swung from $250.44 to $217.80, a nearly 13% intraday spread, before settling at $221.86—down 4.9% on the day. Since Trump’s tariff announcement on April 2, Tesla stock has dropped more than 21%. Investors are rattled by the potential cost hikes and global supply chain snarls that could hit Tesla harder than legacy automakers.
Musk isn’t staying quiet. He said over the weekend that the U.S. and Europe “should not impose any tariffs on each other,” aligning himself with globalist manufacturing interests rather than Washington’s protectionist turn.
Both Musk and Navarro have the president’s ear, which means this feud could have real consequences. Navarro advises on trade. Musk co-leads DOGE, the group tasked with government efficiency. Their disagreement—especially in public—is a reminder of how unpredictable this tariff cycle could get for Tesla shareholders.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 16 Buys, 11 Holds, and 11 Sells assigned in the past three months. Furthermore, the average TSLA price target of $307.75 per share implies 38.7% upside potential.
