The Big Beautiful Breakup

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By Jeff Brown, Editor,
The Bleeding Edge

It all started with polite and honest criticism…

An indirect critique of President Trump's One Big Beautiful Bill:

I was, like, disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decreases it, and undermines the work that the DOGE team is doing.

– Elon Musk, May 2025

But by June last year, the criticisms escalated.

They became harsh, pointed, and personal, with Musk calling the bill, "a disgusting abomination."

To add insult to injury, Musk suggested – conspicuously – to create a new political party… The America Party.

The implication was that Trump would not be a part of it.

Then everything exploded.

The Big Beautiful Breakup

President Trump was quick to retort that Musk was "CRAZY" and threatened to hurt Musk and his companies by cutting any government contracts with Musk's companies.

Trump was very pointed in his threat, suggesting that the government could save money by terminating government subsidies for Musk's companies.

The most ironic part about that statement was that it wasn't true. Musk's companies weren't receiving any subsidies from the government.

Tesla, like every other electric vehicle maker, benefited from the $7,500 U.S. Federal Tax Credit…

But unlike other EV companies, Tesla used the credit to keep its EV prices as low as possible, where other manufacturers raised their prices in amounts similar to the tax credit.

The same was true with solar panel subsidies, which SolarCity – a company that Musk acquired in 2016 – received. Again, the entire industry benefited from similar tax credits.

Better yet, Tesla famously paid back years early, with interest, a $465 million loan that it had received in 2010 from the U.S. Department of Energy.

But despite the truth, the situation got worse, with President Trump claiming that he "asked [Musk] to leave" and end his role as a special governmental employee.

The feud culminated in Musk's threat to rescind support for NASA with the International Space Station (ISS), writing…

In light of the President's statement about the cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately.

Ouch.

Musk's statement weighed heavily because he knew the implications.

In the absence of SpaceX, the Falcon 9 and the Dragon spacecraft, there is no other U.S. option to get astronauts to and from the ISS. (Really? It was almost a step too far to believe…)

After cooling down a bit, Musk retracted the threat to decommission the Dragon spacecraft.

Not surprising, considering how passionate and supportive he is of space exploration.

The back and forth was far more extensive and not nice at all. Musk even went so far as to post a picture of Trump and Jeffrey Epstein from decades ago.

The gloves were completely off, like a bare-knuckle scrum in the NHL. [Side Note: The U.S. won the gold medal for the first time in 46 years in men's ice hockey. Glorious. Grit, resilience, and hard work are the American spirit.]

But there was only one problem with the whole spectacle…

It was all for show.

Just a Charade

I have maintained from the very beginning that the exchange was far too raw, choreographed, and public to be accidental.

These are two men who are largely aligned on most policies.

This is not how disagreements are aired out between a president and the world's most prolific builder and technologist in world history.

Now here's the real story behind the stunt…

The two needed to distance themselves publicly from one another to avoid the appearance of favoritism.

At the time, the national media and the press were up in arms over Musk's proximity to power, the DOGE "overreaches," and more. It comes as no surprise that those who were defrauding the U.S. government were up in arms when the DOGE helped facilitate turning off the spigot.

"They" would have made any sniff of a partnership between Musk's companies and the U.S. Government a target for President Trump's entire second term.

And the funniest part is that the mainstream media fell for the charade hook, line, and sinker.

The breakup needed to be public and raw so that it was believable. And the points of contention and disagreement needed to be true.

It was beautifully scripted, and it accomplished the end goal – that being that the perception of the collaboration/friendship was over.

With the relationship ended, it was back to business for the media – they could turn to other nonsensical narratives and hysterics.

The fact is that the U.S. – and the world – needs what Elon Musk and his teams are building.

It may not be obvious to most of us, but for those who understand the impact of advanced technologies on productivity, economic growth, and national security, the truth is as obvious as the sun rising in the East every morning.

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The Most Important Partnership in History

Tesla, an American company, is one of the world's most important artificial intelligence companies.

It manifests its AI in the form of robotics – specifically, robots with four wheels (i.e., electric vehicles) and robots with two legs (Optimus humanoid robots).

Just imagine how public transportation will be transformed when millions of these CyberCabs are providing very cheap, point-to-point transportation around the country within the next three years.

Tesla CyberCab Prototype in Austin, Texas

And Tesla's Optimus will solve critical labor shortages in difficult, repetitive, and physically demanding labor markets, resulting in accelerated economic growth and productivity improvements.

This is not to mention the importance of Tesla's solar panel business and battery storage technology, which helps offset dependence on the power grid and balance loads on aging power distribution infrastructure.

And SpaceX will be responsible for more than 95% of all mass launched into orbit in 2026.

By next year, that number will likely be 99%.

SpaceX is literally the cornerstone of the entire space economy – one of the most exciting industries in terms of economic growth. Thankfully, it is a Texas-based company.

SpaceX Starship Version 3 Super Heavy Booster on Launch Pad | Source: SpaceX

Version 3 of the Starship will be commercialized quickly, and the critical infrastructure needed to continue to build out SpaceX's Starlink infrastructure, as well as xAI's orbital AI datacenter satellite infrastructure.

Starlink and xAI's 1 million AI satellite constellation should be thought of as a literally world-wide web – a space-based internet infrastructure – critical infrastructure that supports U.S. government national security.

Not to mention that SpaceX is literally the only company that can enable President Trump's aspirations to return to the Moon and eventually Mars.

But we're expected to believe Trump was seriously going to "have to take a look at" deporting Elon Musk, who is South African-born, and stripping him of his U.S. citizenship?

Really?

It makes me laugh yet again to think about all the spun-up lawyers racing to examine the legal-basis for such an action.

The stakes are simply too big to make it even a remote possibility.

Just days ago, NASA's Space Launch System rocket, led by Boeing, suffered yet another failure. It was designed entirely to support missions to the ISS and the Moon, sadly, at a ridiculous cost of billions of dollars for each launch.

On the launch pad this month, NASA discovered a problem with the helium flow in the propulsion system and had to roll the rocket off the launch pad.

The Artemis II mission has been indefinitely postponed this month, and another attempt is unlikely to happen before April.

SpaceX will be the company that lands NASA astronauts on the moon, along with critical supplies to establish a lunar outpost.

This will be used to mine the moon for resources like helium-3, which is critically important on Earth for quantum computing and, ultimately, nuclear fusion.

Rendering of Lunar Outpost | Source: SpaceX

And while SpaceX has recently announced that its short-term priority is now the Moon, not Mars, there will still be a launch window in November or December of 2028 to send an early mission using a Starship to Mars.

And if the importance of Tesla and SpaceX were not enough to U.S. interests, xAI's development of an artificial general intelligence (AGI) is fundamental to not only economic productivity, but to national security, given the U.S.'s adversaries.

The U.S. must be the first to develop this technology to protect against bad actors.

The urgency cannot be understated.

Which is why it was no surprise at all to see the announcement last night from xAI.

A Single Point of Leverage for the Future

xAI has signed an agreement with the U.S. government to allow the U.S. military to use a version of Grok, its frontier AI model, for "all lawful use."

It is important to note that the U.S. government first adopted Anthropic's Claude AI model in a contract with the Department of Defense.

But the CEO of Anthropic is demanding that guardrails be put in place for how Claude is used by the U.S. government, after he learned that Claude was involved in the capture of Venezuela's Maduro.

That hasn't gone well for Anthropic.

The CEO has been called to Washington, D.C., for meetings concerning the use of Claude by the U.S. government.

Needless to say, Anthropic's position could put its $200 million pilot contract at risk.

This creates an opportunity for xAI, OpenAI, and Google.

Google is reportedly close to a deal for using Gemini for classified materials, but OpenAI is reportedly not close at all. Not surprising, on either account.

To state the obvious, the first company to achieve AGI will dominate adoption within U.S. government departments.

And xAI will be the first in the coming months. And it will be the most capable.

Grok, as a maximum truth-seeking AI, will have the highest performance for all applications.

Other companies are intentionally programming their frontier AI models with mistruths and falsehoods, which is a guaranteed way to ensure that there is misalignment and that the AI will come to bad conclusions. The examples are everywhere.

The products that Tesla, SpaceX, and xAI have built – and are building – are critical to the current administration's plans for productivity improvements, economic growth, national ambitions, and national security.

Never before has the success of a single builder and technologist been so closely tied to a government's priorities.

Whether you like Elon Musk or not, we need him to win. We need him to build. We need him to show us what's possible.

We're at a critical point in history, and we have the opportunity to have a world of abundance.

He must succeed. He will succeed.

Jeff

The Big Beautiful Breakup

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