Summary
Highlights
The relationship between Elon Musk and Donald Trump has been defined by tariffs, which has become a breaking point between the two. Peter Navaro said Elon is an assembler, not a manufacturer. Elon Musk took offense to the statement.
The feud highlights a clash between protectionist trade hawks like Peter Navaro and tech oligarchs like Elon Musk, who have benefited from free trade. Trump's tariffs, especially with China, are negatively impacting Musk's businesses. Navarro is winning because tariffs are still being pushed.
Musk's net worth has been affected by tariffs, with Tesla's stock price falling after the announcement, impacting other multinational companies.
Tesla depends on China for rare earth minerals critical for EV production. Tariffs are threatening Tesla's access and margins. There are negative sentiments among Chinese consumers toward Tesla.
SpaceX rocket engines also depend on China for rare earth minerals such as samarium, which can affect supply costs. Starlink faces reputational risks and potential loss of international contracts due to association with Musk and the Trump administration.
Despite Tesla's stock being down, Elon Musk is still the richest person. The merger between XAI and X has boosted his bottom line and the valuation of X. The value of Musk's stake in X and XAI was boosted by around $33 billion.
Elon Musk is trying to pioneer the AI space. XAI is Elon Musk's rebuttal to Open AI.
It is of interest to see if Elon Musk recedes from the political spotlight once his position as a special government employee ends. There are reports that Trump is tiring of Musk, wishing for his tenure to end.