Elon Musk is one of the richest men in the world. He is often credited as a successful engineer and scientist, but he is neither. Elon Musk is a shrewd businessman. He has made his empire by benefitting from government policies and finding loopholes in tax systems.
In the last few years only, Elon Musk has made more than $38 billion off of taxpayers’ hard-earned money, and this number grows every day. Find out different ways Musk circumvented the system and earned big bucks.
Tax Credits:
Elon Musk openly opposes tax credits for eclectic vehicles, and he has done so at the state and national levels. However, these tax credits have helped Tesla capture the majority of the market very early on. Other electronic vehicle companies still rely on government incentives.
The United States confirms all Tesla Model 3 vehicles now qualified for $7,500 EV tax credit. 🇺🇸⚡️ $TSLA pic.twitter.com/Pom8PMptCL
— Teslaconomics (@Teslaconomics) June 6, 2023
The $7,500 tax credit provided by the federal government to EV owners helps down the cost of Tesla vehicles.
Selling government-issued regulatory credits to other automakers that don’t meet pollution requirements is one more Tesla strategy. It has brought in $11.4 billion for Tesla.
Government Loan:
Musk opposed the second stimulus package in 2020, even as Tesla took a government coronavirus bailout (https://t.co/aUfMmh4XLi)
Tesla was founded on govt money– in 2008, Musk took a $465 million loan from the federal govt to mitigate the effects of the financial crisis. pic.twitter.com/yCG2TT7D9U
— Tori Bedford (@Tori_Bedford) November 14, 2021
The company was on the verge of bankruptcy before Elon Musk made a spectacle out of Tesla. With heavy lobbying, Musk secured government funding for a $465 million low-interest loan. This loan was signed off from the Department of Energy in 2008.
As a result, Tesla expanded its business and purchased a new factory in California. This loan also resulted in the development of Model S, turning a start-up into a market leader. Elon Musk paid off the loan early, yet no one can dispute its importance.
Gega Factory Deal:
In 2014, Nevada gave Tesla a $1.3 billion tax incentive to construct its Gigafactory west of Reno. The agreement was designed to increase battery production and create jobs in the area.
Imho, #NVleg set a bad precedent when it agreed to give https://t.co/x2A2wei82f unprecedented incentives to build a giga-factory outside Sparks. And, now w/the proposed expansion additional 100s of millions in abatements will kick in 🧵https://t.co/ctPX91YLAM https://t.co/llx07mtgMA pic.twitter.com/baV7MNO0Ub
— serenity67 (@serenity67) February 27, 2025
Although Tesla saved a lot of money, critics weren’t happy with how Musk kept his side of the deal. It was argued that Musk missed the mark and that the citizens of Nevada did not benefit as much as expected.
NASA’s SpaceX Contracts:
After Tesla’s success, Elon Musk established himself as a reliable businessman. His new venture, SpaceX, promised and tested several of his ideas.
Congratulations Elon and SpaceX Since 2003, SpaceX has received $15.3 billion in contracts from the U.S. government……
But please tell the #TAXPAYERS and the world That the US needs to spend less or THE US will go broke, while you reap the benefits? pic.twitter.com/ZwSHkPUmLP
— Frank®™ (@WFMGINC) March 14, 2024
NASA has contributed more than $15 billion to SpaceX, which has supported deep-space exploration, cargo flights, and crew missions.
SpaceX is a good venture, but it became great due to Tax Payer’s dollars that the government gave away.
Subsidy in New York:
$950 Million in state taxpayer subsidies went toward building the Buffalo Tesla factory under the guise of solar energy production and job creation.
Tesla does not have a solar division at the factory and just fired 30 workers after they announced they were unionizing. pic.twitter.com/JRzaVCqjzS
— Melanie D’Arrigo (@DarrigoMelanie) February 17, 2023
Elon Musk promised New Yorkers several thousand new jobs and a new factory. Based on these, Musk secured a $750 million subsidy. However, none of Musk’s promises came to fruition, and the city wondered if the deal and tax benefits were worth it.
Governmental Contracts:
Elon Musk may reject the idea of government spending and funding several projects; many of his own are funded by the government.
SpaceX has received over $7.6 billion in contracts from the Department of Defense for classified programs, defense systems, and satellite launches.
Despite Musk’s efforts to reduce federal spending in other areas, this financing has guaranteed SpaceX’s place as a significant military contractor.
SpaceX has received over $19 billion in federal contracts since 2008, mostly from the Pentagon.
The man overseeing the these government audits has our tax dollars going to his companies.
— Nina Turner (@ninaturner) February 8, 2025
At least 52 active contracts with NASA, the Defense Department, and other organizations continue to benefit Musk’s enterprises; these contracts might total up to $11.8 billion over the next several years.
DARPA:
Elon Musk invested heavily in DARPA before SpaceX took off. This early investment and his contacts with government officials gave SpaceX a much-needed boost and many tax benefits.
Hidden Subsidies:
#Tesla has received $4.9 Billion in US taxpayer funded subsidies.#SpaceX has received $2.89 Billion in taxpayer funded subsidies#SolarCity has received $750 Million in taxpayer funded subsidies Plus $497.5 in federal grants. The US government is his daddy. pic.twitter.com/vEJmrn0GkX
— 🌻Sissy is Embarrassed By Shih Tzu Say 🚫DMs (@sissyroxx) April 13, 2023
Musk’s businesses have benefited from at least $1.5 billion in state and local subsidies. These agreements assisted Tesla and SpaceX in expanding from Texas to California.
Critics have been raising concerns over these tax breaks and subsidies. Musk and his DOGE itself question several of these funding sources. However, Elon Musk is the biggest beneficiary of these subsidies.
