Elon Musk, CEO of Tesla, is verbally assaulting Peter Navarro, Trump's chief trade advisor.
Elon Musk Slammed by Former Trump Advisor Over Tesla's Global Sourcing
In stark contrast to the applaud Musk received from Europe for his support of a trade pact between the US and the Old World, he faced heavy criticism from Peter Navarro, Trump's trade advisor, in the US. Navarro, a key figure in the development of US tariffs, accused Musk of prioritizing personal benefits over the nation's interest, claiming that Tesla isn't a genuine car manufacturer [1].
Navarro's primary contention lies in Tesla's practice of assembling its electric vehicles using parts sourced from abroad, rather than domestically. These parts originate from countries like Japan, China, and Taiwan [3]. In response, Musk fired back furiously on his social media platform X, branding Navarro as "a real idiot" and "dumber than a bag of rocks" in a series of posts [1]. He defended Tesla as the most vertically integrated automobile manufacturer in the US, with production sites in Texas and California [1].
Criticism Piling Up on Trump's Tariffs
Apart from Navarro's attack, even leading economists and hedge fund managers like Bill Ackman and Stanley Druckenmiller have been vocal about the adverse consequences of Trump's tariffs [2]. As per a CNBC poll on Monday, 69% of surveyed CEOs anticipate a recession due to tariffs, and 37% are planning layoffs as a result [2].
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Important Disclosure:The board and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken a direct and indirect position in the financial instruments mentioned in the publication or related derivatives, which could potentially profit from the price changes following the publication. [3]
- Peter Navarro, Trump's trade advisor, criticized Elon Musk for not making Tesla a genuine car manufacturer, as it sources parts globally from countries like Japan, China, and Taiwan.
- After Navarro's attack, even leading economists and hedge fund managers like Bill Ackman and Stanley Druckenmiller have spoken out against Trump's tariffs, with 69% of surveyed CEOs anticipating a recession due to tariffs and 37% planning layoffs.
- In a fervent response, Musk defended Tesla as the most vertically integrated automobile manufacturer in the US, with production sites in Texas and California.
- The controversy over Tesla's global sourcing strategy also comes against the backdrop of the ongoing criticism piling up on Trump's tariffs, which have been deemed harmful to business and technology mostly due to adverse finance implications.
- General-news headlines are buzzing with the mixed reception Elon Musk and Tesla are receiving in the US, in stark contrast to the European support for Musk's advocacy for a trade pact between the US and the Old World.
