Elon Musk, SpaceX CEO and resident right-hand man to President Donald Trump, has been on a spree of mass layoffs and budget cuts while he himself has enjoyed billions of dollars in government aid for his many businesses.
Reportedly, Musk has received more than $38 billion in aid, funding, and government orders over 20 years on behalf of his automobile company Tesla (nearly $15.7 billion) and his aerospace company SpaceX (around $22.6 billion), according to The Washington Post in a lengthy investigation published on Wednesday, Feb. 26.
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Musk’s ventures, both SpaceX and Tesla, have received substantial government subsidies, loans, and contracts, which have been key to their growth. Tesla received a $465 million loan from the U.S. Department of Energy in 2010 under the Advanced Technology Vehicles Manufacturing program, which it repaid early in 2013.
Tesla’s electric vehicles (EVs) have been eligible for the $7,500 federal EV tax credit, though this phased out after the company hit the 200,000-vehicle threshold in 2019. Additionally, Tesla benefits from state-level incentives for EVs and charging infrastructure, as well as generating significant revenue through the sale of carbon credits to other automakers, helping them meet emissions standards.
When it came to Musk’s space initiatives, SpaceX has secured billions of dollars in contracts from NASA, including getting funded under the Commercial Crew Program for crewed missions to the International Space Station (ISS) and Commercial Resupply Services for cargo deliveries.
SpaceX has also received contracts from the U.S. Department of Defense for military satellite launches and national security missions. Additionally, Tesla and SpaceX have both benefited from state tax incentives in places like California and Texas, which support technological innovation and local economic growth.
Reportedly, these incentives were largely obtained under Joe Biden’s presidency from 2021 through early 2025. The grants provide Musk’s companies with financial support, reducing risks and accelerating innovation.
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For Tesla, they encourage electric vehicle adoption, while for SpaceX, they enable advancements in space exploration. These government funds are helping Musk’s companies scale faster, increase profitability, and maintain competitive advantages.
However, with Musk leading the Department of Government Efficiency (DOGE), many federal agencies are being affected by budget and staffing cuts, with the goals of DOGE being: to reduce “waste” and improve government operations.