Elon Musk rejected claims that government support built Tesla Inc. (TSLA) and SpaceX (SPCX), calling a report "totally false" fresh off SpaceX's public debut on Friday that sent shares soaring 19% and lifted the rocket maker's valuation above $2.1 trillion. The response was triggered by a CNN report stating government grants, loans, contracts and regulatory support played a key role in building both companies. Musk countered on X that government incentives amount to less than 2% of SpaceX and Tesla's value, and said many incentives benefited competitors more than his own companies.
Musk Disputes CNN Report On Government Subsidies
The CNN report included a statement from early Tesla investor Ross Gerber saying, "There would not be (Tesla and SpaceX) if it weren't for the government." Musk rejected the claim on X: "The article is totally false btw. You can add up every government incentive my companies have ever received and they amount to less than 2% of the value of SpaceX and Tesla!" He also said that many of the incentives actually benefited rivals more than his own companies. "And many of these incentives actually helped our competitors disproportionately to Tesla or SpaceX," Musk said.
Musk Backed EV Credit Elimination In 2024
To support his argument, Musk pointed to the elimination of the federal $7,500 EV tax credit. "For example, when President Trump removed the $7500 tax credit for electric vehicles, Tesla sales actually INCREASED, because more buyers shifted from other EV makers to Tesla," Musk said. Musk's position is consistent with a stance he took before the credit was eliminated. In 2024, as Trump's incoming administration considered ending EV subsidies, Musk publicly supported the move: "I think we should get rid of all credits." Months earlier, he had also said on X: "Take away the subsidies. It will only help Tesla." The Trump administration ultimately ended the EV tax credit in 2025.
SpaceX And Tesla Received Government Funding Since 2006
SpaceX received over $500 million in grants, including a $278 million NASA award in 2006 and a $1.6 billion NASA contract in 2008, the report said. Musk himself acknowledged NASA's role in 2012, saying: "The fact (is) that we could not have started SpaceX, nor could we have reached this point, without the help of NASA." Tesla received a $465 million Department of Energy loan in 2010 that helped fund development of the Model S. The report also flagged billions of dollars coming in through EV tax credits and emissions-credit programs, with regulatory-credit sales alone contributing more than $14 billion since 2008.
Musk-Trump Feud Erupted Last Year Over Tax Package
Musk's defense of EV credit cuts is notable given his brief fallout with Trump last year. The relationship between the two deteriorated after Musk criticized Trump's tax-and-spending package, calling it a "disgusting abomination" and warning that it would worsen federal deficits. Trump, in turn, had said: "Elon is upset because we took the EV mandate." Musk rejected the claim and had publicly supported keeping the EV incentive cuts in place: "Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK," Musk said on X at the time.
FAQ
What did Elon Musk say about government support for Tesla and SpaceX?
Musk rejected claims that government support built Tesla and SpaceX, calling a CNN report "totally false." He said on X that government incentives amount to less than 2% of SpaceX and Tesla's value, and that many incentives benefited competitors more than his own companies.
Why did Musk support eliminating the federal EV tax credit?
Musk said Tesla sales increased after President Trump removed the $7,500 tax credit for electric vehicles because more buyers shifted from other EV makers to Tesla. In 2024, Musk publicly supported ending EV subsidies, stating "I think we should get rid of all credits" and "Take away the subsidies. It will only help Tesla."
How much government funding did SpaceX and Tesla receive?
SpaceX received over $500 million in grants, including a $278 million NASA award in 2006 and a $1.6 billion NASA contract in 2008. Tesla received a $465 million Department of Energy loan in 2010. Regulatory-credit sales contributed more than $14 billion to Tesla since 2008.
