Elon Musk has long championed cost-cutting measures in government spending, with his Department of Government Efficiency (DOGE) team advocating for reduced budgets and contracts.
However, a recent report by The Washington Post reveals that Musk and his businesses have been among the largest beneficiaries of taxpayer funds, securing at least $38 billion in government contracts, loans, subsidies and tax credits over the past two decades.
The report, if true, adds an ironical twist to DOGE's efforts to cut back on government spending and save US taxpayer money even as Musk's own firms benefitted billions from it.
According to the Post, these government funds have often arrived at critical moments, helping fuel the rapid expansion of Musk’s ventures, including Tesla and SpaceX.
In 2008, as Tesla struggled financially, Musk actively pursued a low-interest loan from the Energy Department, holding daily meetings with executives and engaging directly with a government loan officer. When Tesla faced a last-minute regulatory hurdle with the Environmental Protection Agency (EPA), Musk personally appealed to then-EPA Administrator Lisa Jackson to intervene, sources told the Post.
Nearly two-thirds of the $38 billion in government support has been allocated in the last five years. In 2024 alone, Musk’s companies secured at least $6.3 billion from federal and local governments, the highest annual amount to date. The Post notes that this figure likely underestimates the true total, as it does not account for classified contracts related to defense and intelligence, including SpaceX’s reported $1.8 billion contract with the National Reconnaissance Office.
In addition, Musk’s businesses are poised to receive up to $11.8 billion more in the coming years through 52 ongoing contracts with agencies such as NASA, the Defense Department, and the General Services Administration, the Post reports. NASA alone has invested more than $15 billion in SpaceX, with the Defense Department also playing a crucial role in the company’s early development.
Tesla, another pillar of Musk’s business empire, has earned $11.4 billion in regulatory credits from federal and state programs designed to promote electric vehicles. These credits have been a major revenue stream for Tesla, with approximately a third of the company’s $35 billion in profits since 2014 stemming from their sale to automakers looking to meet emissions standards. The Post highlights that Tesla's first-ever profitable quarter in 2013 and its first full-year profitability in 2020 were both significantly aided by these credits. Without them, Tesla would have posted a $700 million loss in 2020, extending its streak of unprofitable years.
Despite Tesla benefiting from a $7,500 federal electric vehicle tax credit for consumers, Musk has publicly called for its elimination, arguing that other automakers need it more than Tesla. Meanwhile, the DOGE initiative has sought to cut spending across multiple government agencies, including those that have awarded Musk’s companies major contracts.
While Musk’s relationship with government agencies has been financially advantageous, it has also been mutually beneficial. The Post notes that his ventures have pioneered new markets that align with US government objectives, such as space exploration and clean energy. However, congressional investigators cited by the Post found that NASA and the Defense Department tolerated SpaceX’s delays in meeting contract milestones, providing crucial early support that helped the company survive and expand.
The role of government funding in Musk’s success remains a subject of debate. As one former senior Tesla employee told the Post, "Tesla would not have survived without the loan. It was a critical loan at a critical time."
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