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Elon Musk and Peter Navarro Clash Over Tesla's Manufacturing Practices

The high-profile dispute highlights divisions within Trump's administration over trade policy and domestic manufacturing priorities.

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Senior trade adviser Peter Navarro speaks next to U.S. President Donald Trump in the Oval Office of the White House, on the day Trump signs executive orders for reciprocal tariffs, in Washington, D.C., U.S., February 13, 2025.

Overview

  • Elon Musk publicly criticized Peter Navarro, calling him a 'moron' and 'dumber than a sack of bricks,' after Navarro claimed Tesla relies heavily on foreign parts and is more of a 'car assembler' than a 'manufacturer.'
  • Navarro's comments on CNBC emphasized a preference for fully domestically sourced components, contrasting with Tesla's use of some imported materials for batteries and electronics.
  • Musk defended Tesla's manufacturing credentials, stating it produces the most American-made cars and is the most vertically integrated auto manufacturer in the U.S.
  • The feud underscores broader disagreements within the Trump administration over the impact of sweeping tariffs aimed at boosting domestic manufacturing.
  • Tesla executives have reiterated that significant portions of the company's production, including battery cells and drive units, are performed in U.S. facilities like Giga Texas and Giga Nevada.