Varney & Co. host Stuart Varney discusses the public feud between President Donald Trump and Elon Musk.
Billionaire entrepreneur Elon Musk’s public falling out with President Donald Trump put a spotlight on the government funding that Musk’s companies have received over the years.
The spat began with Musk’s vocal criticism of the Republican tax package making its way through Congress over its deficit impact – projected to reach $2.4 trillion over a decade – which Musk’s Department of Government Efficiency (DOGE) has sought to shrink by other means.
As the two traded barbs over their respective social media platforms, Trump wrote on Truth Social that, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”
Two of Musk’s firms – electric vehicle (EV) maker Tesla and space exploration company SpaceX – have been prominent beneficiaries of government subsidies and contracts, receiving tens of billions of dollars in funds since their inception.
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Elon Musk, the CEO of SpaceX and Tesla, is embroiled in a bitter feud with President Donald Trump, who he supported in the 2024 election. (Richard Bord/WireImage / Getty Images)
Much of the government funding Tesla has received is tied to EV credits and energy infrastructure, while SpaceX has emerged as a crucial contractor for NASA and the Space Force, with its Dragon spacecraft ferrying astronauts and cargo to the International Space Station as well as developing a moon lander.
An analysis by The Washington Post found that Musk and his firms have received $38 billion in the form of government contracts, loans, subsidies and tax credits over more than two decades that helped propel their growth.
The Post found that almost two-thirds of the $38 billion in funds were allocated to Musk’s companies within the last five years. It added that in 2024, federal and local governments provided at least $6.3 billion to Musk’s companies, the highest amount to date.
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Tesla has benefited from government subsidies and tax credits aimed at spurring the electric vehicle (EV) industry. (Yichuan Cao/NurPhoto via Getty Images)
SpaceX has received at least $1 billion in government contracts, loans, subsidies and tax credits each year since 2016, and between $2 billion and $4 billion a year from 2021 to 2024 – while Tesla has received over $1 billion a year since 2020, the Post found.
The outlet noted that the companies have likely received additional funding and contracts that aren’t publicly disclosed, such as classified contracts for defense and intelligence activities.
Reuters previously reported that SpaceX received a Department of Defense contract to develop spy satellites.
The Wall Street Journal reported that the intelligence satellite contract is valued at $1.8 billion, according to company documents.
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SpaceX’s Dragon capsule is the only U.S. spacecraft currently capable of missions to the International Space Station. (NASA/Keegan Barber / Fox News)
Federal spending and contract data show that since 2008, SpaceX has been awarded over $20 billion in government contracts and funding commitments, of which nearly $9 billion has been paid.
The Independent noted that the total value of those SpaceX contracts could rise to more than $89 billion if completed.
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The critical role of SpaceX’s Dragon spacecraft came up amid the Trump-Musk feud, as Musk replied in response to Trump’s threat of canceling all his federal contracts and subsidies by suggesting the company would begin to immediately decommission the Dragon – which is the only operational U.S. spacecraft in operation capable of missions to the International Space Station.
Musk later backtracked on his retaliatory threat, saying SpaceX won’t decommission the Dragon.
Reuters contributed to this report.
