Elon Musk's Tesla ‘would not have survived’ without US government's $38 billion in funding

Elon Musk's businesses, including Tesla, have secured nearly $38 billion in government funding over two decades, largely due to regulatory credits.

The Washington Post's recent investigative report has revealed Elon Musk’s businesses have been among the largest recipients of government funding, receiving an estimated $38 billion in contracts, loans, subsidies, and tax credits over the past two decades.

A Washington Post investigation reveals Elon Musk's companies have received $38 billion in government support, with Tesla benefiting significantly from regulatory credits. (Reuters)

Tesla earned $11.4 billion in regulatory credits designed to encourage the production of electric vehicles. The Post pointed out that these credits were largely responsible for Tesla’s first profitable quarter in 2013 and its first full-year profitability in 2020. Without them, Tesla would have faced a $700 million loss in 2020, prolonging its streak of unprofitable years.

“Tesla would not have survived without the loan. It was a critical loan at a critical time,” a source told The Washington Post.

Back in 2008, when Tesla faced huge financial struggles, Musk was actively involved in securing a low-interest loan from the Department of Energy. He reportedly held daily meetings with executives and worked closely with a government loan officer to push the deal forward.

Sources even told The Washington Post that when Tesla encountered last-minute regulatory challenges with the Environmental Protection Agency (EPA), Musk personally contacted then-EPA Administrator Lisa Jackson to intervene.

Musk apparently built his empire on US government's funding

Over the last five years, nearly two-thirds of the $38 billion in government support was allocated to Musk’s businesses. In 2024 alone, these companies secured at least $6.3 billion from federal and local governments—the highest annual figure to date. However, The Washington Post noted that this estimate likely falls short of the actual amount, as it does not include classified defence and intelligence contracts, such as SpaceX’s reported $1.8 billion deal with the National Reconnaissance Office.

Musk’s companies are expected to receive an additional $11.8 billion in the coming years through 52 active contracts with agencies like NASA, the Department of Defense, and the General Services Administration. NASA alone has contributed more than $15 billion to SpaceX.

“Not every entrepreneur at this scale has been this dependent on federal money — certainly not Nvidia, not Microsoft, nor Amazon, nor Meta,” Jeffrey Sonnenfeld, professor at the Yale School of Management, told The Washington Post.

“With DOGE, there does seem to be a paradox there. He has been a big beneficiary of national industrial policy, especially Democrat industrial policy, through government funding.”