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Tesla CEO Elon Musk has taken aim at Donald Trump's former trade adviser Peter Navarro as the electric car company's stock continues to drop.

The public feud erupted after Navarro criticized Tesla's business model, calling it a "car assembler" rather than a manufacturer. Musk responded harshly, calling Navarro "a moron" and "dangerously dumb."

This disagreement comes as Tesla shares fell for the fourth day in a row, with a 22% loss in just the past week.

The company's stock has dropped 45% this year, wiping out over $585 billion in market value, CNBC said.

Many analysts say new tariffs announced by Trump are part of the reason Tesla is struggling, especially since the company relies on parts from countries like China and Mexico.

Navarro, who helped shape Trump's tariff policy, argued that the US should make more car parts domestically.

"Right now, we're an assembly line for German engines and transmissions," he said during a TV interview. He also suggested Musk's success is overstated because many Tesla parts come from outside the US.

Tesla Tops US-Made List as Musk Slams Trade Critic Navarro

In response, Musk posted proof that Tesla uses more US-made parts than any other car brand. He cited a study by Cars.com showing Tesla as the most "Made in America" vehicle. "By any definition, Tesla is the most vertically integrated car company in the country," Musk wrote on X, the platform he owns.

Musk's brother Kimbal, who also sits on Tesla's board, joined the criticism. He called Navarro a "C-minus student" and said the new tariffs would act as a permanent tax on US consumers.

The argument between Musk and Navarro has highlighted deeper divisions within Trump's supporters. While Trump wants stronger tariffs to boost American factories, Musk says this will hurt businesses, including Tesla.

According to BBC, at the White House press briefing, spokesperson Karoline Leavitt downplayed the conflict. "These are obviously two individuals who have very different views on trade and tariffs," she said. "Boys will be boys."

Industry experts are warning that the tariffs could disrupt global supply chains. "The tariffs in their current form will hurt Tesla's operations and its edge over competitors," said analyst Dan Ives.

Musk has previously spoken against tariffs and said he supports free trade. He recently suggested the US and Europe should form a zero-tariff trade zone.

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Elon Musk, Tesla