The Real Story Behind the Musk vs.Trump Feud

The Crashout Heard 'Round the Web

The modern term is crashout. The old-school term is clusterf**k. Either way, what just erupted between Elon Musk and Donald Trump is a textbook example of what happens when empire and ego collide at full throttle.

What began as a low-rumble Twitter (now X) tiff about electric vehicle tax credits and Trump's Big Beautiful Bill (BBB) quickly turned nuclear. Trump’s camp threatened to strip Tesla of every last tax perk and terminate NASA’s contracts with SpaceX. Hollow threats? Mostly. But the message was clear: get in line or get torched.

Then Musk, never one to shy from fire, flung an atomic accusation—alleging that Trump was sitting on Epstein files because he was in them. Whether this was provoked by bad intel, edibles, or pure hubris is unclear. But in the realm of U.S. politics, where the Deep State leaks like a sieve when it suits them, it’s hard to imagine such dirt wouldn’t have surfaced already if it were real.

Still, once the gloves are off and blood hits the mat, there’s no going back.

The Real Story Behind the Feud

Musk would like us to believe this beef is about fiscal responsibility. He lambasts the BBB for its pork-barrel spending—and he’s not wrong. But make no mistake: this isn’t some principled libertarian stand. This is about money, market share, and Mao.

First, the EV credits. Trump’s BBB slashes the $7,500 consumer subsidy that props up electric vehicle sales. Without it, Tesla prices spike, demand drops, and competitors—especially state-subsidized Chinese EV makers—grab more market share. The bill also wipes out other incentives for home chargers and used EVs, along with commercial tax breaks.

Tesla is already bleeding market dominance as detailed in Tesla’s Moment of Truth. This isn’t ideological warfare—it’s economic survival.

So Musk struck first.

(Disclosure: Since May 28, I’ve held Tesla put options, not because of this feud, but because the “robotaxi” fantasy is headed for a brick wall.)

China: The Unspoken Battlefield

Then there’s China—Tesla’s silent business partner and Achilles’ heel.

Over half of Tesla’s vehicles are built in Shanghai. Chinese battery-maker CATL supplies Tesla’s critical lithium cells. The company is as entangled with the Chinese Communist Party as Apple, if not more. A serious U.S.-China decoupling would gut Tesla like a fish.

When Musk and Trump were allies, Musk played the role of “China whisperer,” tempering Trump's hawkish impulses. But now the China hardliners—Peter Navarro and company—have Trump’s ear exclusively.

And Trump’s dialing up the heat. With Musk out of the picture, expect the trade war to intensify. Already, the rare earths supply is getting weaponized by Beijing.

Rare Earths, Real Risk

Rare earth elements (REEs) aren’t just exotic metals—they’re the beating heart of electric motors, missile systems, and data infrastructure. And China controls over 80% of global supply. In retaliation for semiconductor sanctions, Beijing is squeezing the spigot.

The Wall Street Journal reports that four major automakers are scrambling to shift supply chains or even move operations into China to avoid complete production shutdowns. Wrap your head around that: U.S. companies may have to relocate to China just to keep the lights on.

This isn’t about tariffs anymore. It’s about survival.

Trump's China Gambit—and the Empty Chair Across the Table

Amid this turmoil, Trump announced plans to visit China following what he called a “very good” call with Xi Jinping. He even extended a White House invite.

Is this diplomacy? A thaw? Don’t bet on it.

Trump’s new foreign policy team is composed almost entirely of China hawks. Any “talks” with Xi will be theater at best, sanctions at worst. The real levers of power have moved, and Musk is no longer part of the apparatus that might have steered things toward detente.

Xi, for his part, is not a pushover. Trump can charm all he wants, but the Chinese leader is playing the long game—and he’s playing it better.

What This Means for You

This feud isn’t about billionaires squabbling. It’s about the dissolution of the uneasy alliance between state and tech that’s dominated the 21st century economy.

Musk built his empire on the back of subsidies, government contracts, and access to cheap Chinese labor. Trump, like every president before him, leveraged private-sector innovators to push policy agendas.

That relationship is dead.

The question is: what comes next? Will Tesla weather a storm of revoked subsidies, rare earth restrictions, and political exile? Will Trump’s economic team sacrifice American automakers to crush Beijing?

And more importantly—how exposed are you?

If you think these political earthquakes won’t shake your financial foundation, you’re not paying attention.

Bill Brocius has been warning about these dominoes for months. His best-selling book, End of Banking As You Know It, explains why these state-corporate ruptures are precursors to deeper instability. You can grab your copy now or, better yet, subscribe to his Inner Circle Newsletter for just $19.95—where he details weekly moves to survive the coming financial reset.

✔️ Get Bill’s free guide ‘7 Steps to Protect Yourself from Bank Failure’ here: https://offers.dedollarizenews.com?utm_source=7steps_ebook&utm_medium=website&utm_campaign=Good_Solid_Info&utm_term=static&utm_content=Eric_Blair

✔️ Subscribe to the Inner Circle: $19.95/month for direct insights from Bill

✔️ Read End of Banking As You Know It—before the next crashout becomes your financial ruin.

Stay alert. Stay sovereign.
—Eric Blair