Is the Musk-Trump Alliance Cracking Under Tariff Tensions?

From EV endorsements to trade wars: The billionaire bromance hits a snag.
Just months after Elon Musk pledged millions to Donald Trump’s campaign—and the former president shockingly embraced electric vehicles—their partnership is fraying over one issue: tariffs. Musk’s behind-the-scenes lobbying and public critiques of Trump’s aggressive trade policies reveal a high-stakes clash between political loyalty and business survival. Will Tesla pay the price for this rift? Let’s dive in.

⚡ The Tariff Tug-of-War: Why Musk and Trump Are Clashing

• 💸 Tesla’s stock plunge: Shares have nosedived 38.5% YTD, hitting $233.29 from December’s $479.86 peak.
• 📈 Trump’s tariff escalation: A 50% hike on China (on top of existing 20% and 34% levies) and 20% on EU imports.
• 🌍 Musk’s zero-tariff crusade: Publicly pushed for U.S.-EU free trade and labor mobility during Italy meeting.
• 🔥 Backlash against Tesla: Vandalism incidents (Molotov cocktails in Vegas, showroom shootings in Portland) tied to Musk-Trump ties.

✅ Musk’s Counterattack: Lobbying, Lectures, and Lawsuits

• 📝 Behind closed doors: Musk reportedly urged Trump to ease tariffs, citing harm to U.S. exporters like Tesla.
• 🎓 Navarro roast: Mocked Trump’s trade advisor Peter Navarro: “A PhD in Econ from Harvard is a bad thing.”
• ⚖️ Legal history: Tesla sued Trump’s White House in 2020 over “arbitrary” China tariffs—and lost.
• 📉 March warning: Tesla’s unsigned letter to U.S. trade rep predicted tariff retaliation—now unfolding with China.

🚧 Roadblocks: Why This Feud Could Get Ugly

• ⚠️ Tesla’s shrinking margins: Tariffs on Chinese batteries and EU retaliation threaten already strained profits.
• 🗳️ GOP divisions: Trump’s “America First” base vs. pro-trade Republicans—Musk can’t please both.
• 💔 Brand toxicity: Anti-Trump consumers ditching Teslas—trade-ins hit record highs.
• 🔄 Musk’s divided loyalties: Balancing X’s pro-Trump user base with Tesla’s global supply chain needs.

📉 Final Thoughts: A Lose-Lose Scenario?

Musk’s influence appears limited: Trump’s tariff threats keep escalating despite Tesla’s warnings. If the feud continues:

• ✅ Win for Musk: Only if Trump backs down (unlikely) or Tesla pivots to tariff-proof suppliers.
• 📉 Loss for Tesla: More price hikes, slower EV adoption, and lasting brand damage from political fires.
• 🚀 Wild card: Could Musk’s criticism of Navarro signal a broader break from Trump’s inner circle?

One thing’s clear: When billionaires and politicians collide, businesses often become collateral damage. Will Tesla shareholders tolerate Musk’s high-wire act? Sound off below.

Let us know on X (Former Twitter)

Sources: Eleanor Pringle. Cracks are beginning to show in the Musk-Trump partnership after the Tesla CEO reportedly appealed to White House on tariffs, April 8, 2025. https://fortune.com/2025/04/08/cracks-trump-musk-partnership-reported-tariffs-eu-us/