Elon Musk, the world’s richest man, built his fortune largely with government funding. A recent report by The Washington Post found that his companies received at least $6.3 billion in commitments from state and local governments in 2024 alone. This amount is likely an undercount due to classified federal funding related to defense projects.
Musk’s company SpaceX has a contract worth $1.8 billion with the National Reconnaissance Office, an intelligence agency tasked with building satellites for national defense. Additionally, Tesla has received significant government funding, including $11.4 billion in regulatory credits meant to boost electric cars and a $7,500 tax credit for buyers of electric vehicles.
When Musk took over as CEO of Tesla in 2008, the company was cash-poor and relied on a $465 million loan from the Department of Energy to survive. A former Tesla employee described the loan as “critical” at a critical time, suggesting that it played a crucial role in the company’s survival.
However, Musk has been vocal about government fraud and waste, despite benefiting significantly from taxpayer funds himself. His efforts to slash billions from government contracts with his Department of Government Efficiency initiative may be motivated by a desire to maximize government funding for his companies while minimizing regulations and investigations into himself.
Source: https://newrepublic.com/post/192001/elon-musk-government-funding-wealth