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Trump ally and Tesla, Inc. (TSLA) CEO Elon Musk called out Peter Navarro, escalating his criticism of the administration’s tariff policies.
Reacting to Navarro calling him and Tesla a “car assembler” rather than a manufacturer, Musk countered that Tesla has the most American-made cars.
The Tesla CEO strongly criticized Navarro, showing that the discontent in Trump’s core team is now out in the open.
“When it comes to tariffs and trade, we all understand in the White House, and the American people understand, that Elon’s a car manufacturer. But he’s not a car manufacturer, he’s a car assembler,” Navarro said in a CNBC interview.
Navarro added that Tesla procures some of the core parts of its electric vehicles, like the battery and electronics, from countries like China, Japan, and Taiwan.
Navarro said that while he understood why Tesla procured these parts from other countries, he wants them to be built in the U.S. instead.
“Everything’s fine with Elon,” Navarro added, dismissing concerns over the disagreement.
Musk called it “demonstrably false” and posted a report by Kelly Blue Book that said Tesla is the only American company to make it to the top ten when it comes to the most American-made cars in the country.
The report shows four Tesla cars—the Model Y, 3, X, and S—taking the top four spots on the list.
This comes at a time when Republican megadonors and Trump backers like Home Depot Inc. co-founder Ken Langone and billionaire hedge fund manager Bill Ackman have openly criticized Trump's tariffs.
Musk also made a cryptic post earlier, with a clip of the late economist Milton Friedman calling out the central planning system and instead voicing support for a globally connected economy.
According to a Reuters report, the Tesla CEO has also said he hopes for zero tariffs between the U.S. and Europe.
Tesla stock was up nearly 2.7% at the time of writing, while the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, was up 1.8%.
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