The first cracks in the close relationship between Mr. Trump and billionaire Elon Musk
Billionaire Elon Musk and US President Donald Trump appear to be at odds over the tough tariff policies pursued by Mr. Trump. Musk opposes these policies due to concerns about negative impacts on US trade relations and the interests of the electric car company Tesla, which he founded.
Despite Elon Musk’s repeated public support for zero tariffs between the US and the European Union (EU), President Donald Trump continues to push trade barriers, putting the two men who once had a close relationship at odds over tariffs.
Tensions between Musk and Mr Trump became more apparent ahead of the US presidential election last November.
Previously, Tesla’s CEO had pledged millions of dollars to the election campaign of Mr. Trump – the Republican candidate. In response, Mr. Trump also showed a change of opinion when he expressed his support for electric cars, even said to own one for personal use.
However, it seems that the “relationship” between the two is coming to an end. Mr. Trump’s controversial tariff policy is said to be the main cause of this rift.
Billionaire Elon Musk and US President Donald Trump appear to be at odds over the tough tariff policy that Mr. Trump is pursuing.
Elon Musk, who is facing a net worth hit by a plunge in Tesla shares, is said to have directly appealed to Trump to change his stance on foreign trade policy. According to the Washington Post, two sources confirmed that Musk tried to intervene on the tariff issue, but his appeals appeared to fall on deaf ears.
In the past 24 hours, Mr. Trump has threatened to increase tariffs on Chinese imports by 50%. This is in addition to the 20% tax already imposed, along with the 34% tax announced on April 2.
The private conversations between Musk and Mr. Trump are said to reflect the billionaire’s public stance, while also demonstrating Tesla’s concerns about new trade barriers.
Over the weekend, Musk continued to call for a “zero-tariff” deal between the US and the EU – a move that stands in stark contrast to the 20% tariff that Mr Trump has just imposed on goods from the EU.
“For example, I hope that we will eventually agree that Europe and the United States should move towards zero tariffs. In my view, this would effectively create a free trade area between Europe and North America,” Musk said during a meeting with Italian Deputy Prime Minister Matteo Salvini.
He also stressed the importance of free labor across borders, saying people should have the right to choose where they want to work. “That’s certainly my advice to the president,” Musk added.
Musk also recently publicly criticized Peter Navarro, Trump’s top trade adviser, who played a key role in formulating tariff policy. In a video posted on the X platform, Navarro explained tariff policy by citing his Ivy League economics degree. However, Musk responded harshly: “A PhD in economics from Harvard is a bad thing, not a good thing. It turns out that the ego/brain is bigger than the problem.”
The relationship between Elon Musk and Mr. Trump not only affects his personal image but also causes the Tesla brand to suffer.
Tesla suffered heavy losses
Elon Musk’s relationship with Trump has not only affected his personal image but also caused the Tesla brand to suffer. A boycott campaign has caused many customers to switch to other car manufacturers, and many Tesla facilities and vehicles have become targets of attacks.
In Las Vegas, several Teslas were firebombed; in Portland, Oregon, a Tesla showroom was attacked; and in Boston, several charging stations were set on fire.
Not only is Musk’s personal relationship with the White House detrimental to Tesla, Trump’s trade policies are also directly hitting the company’s business.
Last March, Tesla sent an unsigned letter to US Trade Representative Jamieson Greer, warning that “US exporters are suffering disproportionately as other countries retaliate against US trade actions.”
The letter also stressed that tough tariffs could lead to retaliation from trading partners and competitors, directly impacting American businesses and exporters. Tesla said past trade actions have escalated a tit-for-tat spiral in the auto industry.
Tesla has long been opposed to tariffs. In 2020, during Trump’s first term, the electric carmaker was among a group of automakers that sued the White House over tariffs on Chinese goods. At the time, Tesla called the tariffs “arbitrary, capricious, and an abuse of power.”
Neither Tesla nor the Trump administration responded to Fortune’s request for comment.
Tesla’s stock price has fallen 38.5% year-to-date, to $233.29 — a significant drop from its all-time high of $479.86 in December.
