Elon Musk’s business empire is built on $38 billion in government funding
Government infusions at key moments helped Tesla and SpaceX flourish, boosting Musk’s wealth.
By Desmond Butler, Trisha Thadani, Emmanuel Martinez, Aaron Gregg, Luis Melgar, Jonathan O'Connell and Dan Keating
February 26, 2025
Elon Musk and his cost-cutting U.S. DOGE Service team have been on a mission to trim government largesse. Yet Musk is one of the greatest beneficiaries of the taxpayers’ coffers.
Over the years, Musk and his businesses have received at least $38 billion in government contracts, loans, subsidies and tax credits, often at critical moments, a Washington Post analysis has found, helping seed the growth that has made him the world’s richest person.
The payments stretch back more than 20 years. Shortly after becoming CEO of a cash-strapped Tesla in 2008, Musk fought hard to secure a low-interest loan from the Energy Department, according to two people directly involved with the process, holding daily briefings with company executives about the paperwork and spending hours with a government loan officer.
When Tesla soon after realized it was missing a crucial Environmental Protection Agency certification it needed to qualify for the loan days before Christmas, Musk went straight to the top, urging then-EPA Administrator Lisa Jackson to intervene, according to one of the people. Both people spoke on the condition of anonymity for fear of retribution.
Nearly two-thirds of the $38 billion in funds have been promised to Musk’s businesses in the past five years.
In 2024 alone, federal and local governments committed at least $6.3 billion to Musk’s companies, the highest total to date.
The total amount is probably larger: This analysis includes only publicly available contracts, omitting classified defense and intelligence work for the federal government. SpaceX has been developing spy satellites for the National Reconnaissance Office, the Pentagon’s spy satellite division, according to the Reuters news agency. The Wall Street Journal reported that contract was worth $1.8 billion, citing company documents.
The Post found nearly a dozen other local grants, reimbursements and tax credits where the specific amount of money is not public.
An additional 52 ongoing contracts with seven government agencies — including NASA, the Defense Department and the General Services Administration — are on track to potentially pay Musk’s companies an additional $11.8 billion over the next few years, according to The Post’s analysis.
Government contracts to SpaceX from NASA and the Defense Department make up the majority of funds. Tesla has earned $11.4 billion in regulatory credits from federal and state programs aimed at boosting the electric-car industry, and experts say its sales have been bolstered by a federal $7,500 electric-vehicle tax credit for consumers. Musk has called for an end to that consumer credit, arguing his competitors need the incentive more than Tesla.
DOGE, which stands for Department of Government Efficiency, has sought to cut staff, slash budgets or cut contracts at all seven of the agencies where Musk’s companies have ongoing contracts. That includes the General Services Administration, Defense Department and Transportation Department.
Musk’s relationships with government agencies have at times been mutually beneficial: His ventures have pioneered new markets that have advanced U.S. government goals, including space exploration and the expansion of electric vehicles. And while many of the government programs Musk has benefited from are open to others in the electric-vehicle industry, no other company has gone on to achieve Tesla’s market dominance.
“Not every entrepreneur at this scale has been this dependent on federal money — certainly not Nvidia, not Microsoft, nor Amazon, nor Meta,” said Jeffrey Sonnenfeld, professor at the Yale School of Management, who noted that much of the funding has come during Democratic administrations. “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.”
Government funding also provided key early infusions to Musk’s ventures. NASA and the Defense Department nurtured SpaceX in its earliest years with contracts that helped it build infrastructure, while the agency tolerated the company’s failure to meet required milestones on time, according to congressional investigators.
The $465 million Energy Department loan, which arrived in 2010, helped fuel Tesla’s meteoric rise: With that money, the company engineered and assembled its luxury electric sedan — the Model S — and bought a factory in Fremont, California, according to the agency. Tesla went public six months later.
“Tesla would not have survived without the loan,” said a former high-level Tesla employee familiar with the company’s finances, who spoke on the condition of anonymity for fear of retribution. “It was a critical loan at a critical time.”
Musk himself noted the challenges facing the company at the time, according to emails published by the Free Beacon, imploring Jackson, then the EPA chief, to help. “Tesla struggled for its life over the past year and then, just when we thought things would be alright, this issue came to light,” he wrote. “I am at your disposal 24/7,” Musk added, including his cellphone number.
Jackson declined to comment through a representative at Apple, where she now works. SpaceX, Musk and Tesla did not respond to requests for comment.
NASA spokeswoman Cheryl Warner said the agency has invested more than $15 billion in SpaceX for its work on numerous space programs.
“NASA is working with partners like SpaceX to build an economy in low Earth orbit and take our next giant leaps in exploration at the Moon and Mars for the benefit of all,” Warner said in an email.
White House spokesman Harrison Fields said that Musk’s business interests would not conflict with his work at DOGE. “Any contracts connected to Elon Musk’s very successful companies will comply with every government ethics rule as it pertains to potential conflicts of interests,” Fields said in an email.
As much as Tesla executives valued the government support, Musk paid off the 2010 low-interest loan within a matter of years. In a 2013 news release announcing that he had done so, Musk thanked the Energy Department and Congress, and “particularly the American taxpayer from whom these funds originate.”
“I hope we did you proud,” he said.