Source: Car Scoops Archive: Ghost
The collision between politics and the auto industry has never been particularly graceful, and now, it’s taken another sharp turn. President Donald Trump’s top trade advisor, Peter Navarro, has taken aim at Tesla CEO Elon Musk, not as a visionary entrepreneur or even a carmaker, but as something much less flattering: a car assembler.
The jab came just days after Musk publicly called for a tariff-free trade zone between the United States and Europe, a move he framed as a step toward economic openness. Apparently, not everyone in the White House agrees.
Peter Navarro is one of the masterminds behind Trump’s sweeping tariff policy that has triggered turmoil in global markets and, according to many economists, increased the likelihood of the United States slipping into recession.
While recently speaking with CNBC, Navarro dismissed Musk’s calls for zero tariffs, saying that he simply wants Tesla to have access to cheap parts from overseas.
“When it comes to tariffs and trade, we all understand in the White House – and the American people understand – that Elon is a car manufacturer, but he’s not a car manufacturer. He’s a car assembler,” Navarro said.
According to Navarro, a significant portion of Tesla’s supply chain stretches across Asia, including Japan, China, and Taiwan. He went on to say that Musk “wants the cheap foreign parts,” framing the Tesla boss as someone more interested in bargain sourcing than national manufacturing strength.
“The difference is in our thinking and Elon’s on this is that we want the tires made in Akron,” Navarro added. “We want the transmissions made in Indianapolis. We want the engines made in Flint and Saginaw, and we want the cars manufactured here.”
Musk Fires Back
Tesla’s CEO isn’t known for letting criticism slide quietly, and this time was no exception. Musk quickly escalated the spat with Navarro, defending his company and lashing out against the administration’s trade approach.
“Tesla has the most American-made cars. Navarro is dumber than a sack of bricks,” Musk wrote on X, the social media platform he owns. In a follow-up post, he doubled down: “Navarro is truly a moron. What he says here is demonstrably false.”
Tesla’s US Manufacturing Footprint Tells a Different Story
Despite Navarro’s criticism, Tesla’s actual manufacturing data paints a far more domestic picture. While it’s true that no automaker is completely immune from global supply chains, Tesla’s vehicles, including Model 3, Model Y, Cybertruck, Model S, and Model X, all consistently rank among the most American-made in the industry.
According to a recent analysis from the Kogod School and Business at American University, 87.5% of the parts used by the current Model 3 Performance use parts from either the US or Canada. Similarly, the outgoing base Model Y and Model Y Long Range use 85% domestic content, the Cybertruck has 82.5% local content, and the Model S and Model X both use 80% domestic parts.
Least Affected, Yet Still Opposed
Ironically, that makes Tesla one of the automakers least impacted by the tariffs Navarro helped design. And yet, Musk remains one of the most vocal critics of those same tariffs. His ongoing dialogue with Trump has often been marked by a mix of public agreement and pointed disagreement, and trade policy remains one of the bigger sticking points.
Despite his high-profile friendship with the former president, Musk hasn’t been able to sway Trump’s stance on tariffs. And as Navarro’s remarks show, even Tesla’s substantial American manufacturing presence doesn’t shield it from criticism in today’s politically charged trade debates.
