A notable investor, Ross Gerber, co-founder of Gerber Kawasaki, has pointed out that government agreements have been fundamental to the achievements of both Tesla Inc. and SpaceX. He openly expressed his admiration for the products offered by these companies, while also stressing the substantial backing received from the U.S. government, which he views as a critical factor in their prosperity.
This assertion is strongly supported by an in-depth investigation conducted by The Washington Post earlier this year, which revealed that over the last two decades, Elon Musk's enterprises, Tesla and SpaceX, have collectively secured more than $38 billion in federal contracts, grants, and loans. Furthermore, SpaceX has been a key participant in defense projects, such as former President Donald Trump's 'Golden Dome' missile defense initiative, and its Starlink satellite internet service has received significant public funding, including $119 million from Montana to enhance connectivity for over 20,000 locations. The company has also strategically utilized tax benefits, offsetting over $5 billion in losses since 2002 to reduce its federal income tax burden by more than $3 billion. Recently, Musk's artificial intelligence firm, xAI, partnered with the Pentagon to deploy its Grok AI models for military and civilian applications, and Tesla's electric vehicle sales were considerably boosted by a $7,500 federal tax credit, a program that was later discontinued.
These instances underscore the profound impact of governmental collaboration on the trajectory of Musk's companies. Despite these substantial contributions, Musk has criticized public figures like Senator Bernie Sanders, labeling him a 'taker' and asserting that his own wealth is intrinsically tied to the market value of Tesla and SpaceX shares, which he believes solely reflects the provision of superior products and services to consumers.
The extensive governmental support received by Tesla and SpaceX illustrates a powerful synergy between public investment and private sector innovation. This partnership not only accelerates technological advancement but also creates opportunities for societal benefit through enhanced connectivity, sustainable transportation, and national security. It serves as a testament to the idea that collective efforts, combining entrepreneurial spirit with strategic public policy, can drive significant progress and contribute to a more advanced and interconnected future.