Tesla (TSLA) CEO Elon Musk is publicly clashing with Peter Navarro, the Trump Administration’s top trade adviser, who is responsible for pushing protectionist policies like tariffs. Navarro criticized Tesla’s manufacturing approach by claiming that the company is more of a parts assembler than a true carmaker. He argued that Tesla relies too much on international components from places like Japan, China, and Taiwan and brushed off Musk’s support for zero tariffs between the U.S. and Europe as self-serving.
Unsurprisingly, Musk fired back on social media platform X by saying that Navarro is “truly a moron” and “dumber than a sack of bricks.” He pushed back against Navarro’s claims by stating that Tesla builds the most American-made cars and is the most vertically integrated automaker in the U.S. Musk then went on to highlight that Tesla vehicles are assembled in California and Texas with a high percentage of U.S.-sourced parts. He also took a jab at Navarro’s Harvard Ph.D. by claiming that it only inflated his ego.
This disagreement highlights the deepening tensions between business leaders and government officials over the role of tariffs in trade policy. While Musk argues for free trade and zero tariffs with Europe, Navarro and others have defended tariffs as essential for supporting U.S. manufacturing jobs, especially in states like Michigan and Indiana. Meanwhile, the business world is growing more concerned about the overall economy, according to a CNBC survey. In fact, 69% of CEOs now expect a recession due to tariffs, and 37% are preparing to cut jobs.
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, as indicated by the graphic below. Furthermore, the average TSLA price target of $306.62 per share implies 32.8% upside potential.
