Elon Musk Says Tesla Sales 'Actually Increased' When Trump Removed $7,500 EV Credit, Calls Government Inc – Benzinga
Musk joined an exchange on X between Sen. Mike Lee (R-Utah) and Sen. Ed Markey (D-Mass.) after Markey argued that Musk's wealth came from "our money" through government aid to Tesla and SpaceX. Markey cited a CNN report asserting that government support helped create much of Musk's fortune.
Musk called the article "totally false" and said that all government incentives his companies received, combined, amounted to less than 2% of the value of SpaceX and Tesla.
"And many of these incentives actually helped our competitors disproportionately to Tesla or SpaceX. For example, when President Trump removed the $7500 tax credit for electric vehicles, Tesla sales actually INCREASED, because more buyers shifted from other EV makers to Tesla," Musk stated.
His stance is consistent with earlier comments. In 2024, as Trump's incoming administration weighed ending EV subsidies, Musk said, "I think we should get rid of all credits." He also wrote on X, "Take away the subsidies. It will only help Tesla."
The Trump administration eventually ended the federal EV tax credit in 2025. Analysts have said the $7,500 credit helped Tesla and other automakers charge more than the market might otherwise support.
The CNN report cited early SpaceX support, including NASA grants and a 2008 cargo contract, and noted Musk said in 2012 that SpaceX could not have reached that point "without the help of NASA."
The exchange comes after Musk's brief fallout with Trump last year over the president's tax-and-spending package. Musk called it a "disgusting abomination," while Trump said, "Elon is upset because we took the EV mandate."
Benzinga Edge Rankings show that Tesla stock offers excellent Growth and Quality, but poor Momentum and Value. Tesla also fails to provide a favorable price trend in the Short and Long term.
Photo: Frederic Legrand – COMEO On Shutterstock.com
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Elon Musk pushed back on Sunday against claims that government support was responsible for the rise of SpaceX aka Space Exploration Technologies Corp. (NASDAQ:SPCX) and Tesla Inc. (NASDAQ:TSLA), arguing that taxpayer-backed incentives represented only a small fraction of the companies' value.
Here's a recap of the top stories that dominated the headlines for Elon Musk-led EV giant Tesla this week.
Tesla also received a $465 million Energy Department loan in 2010 to support Model S development and manufacturing. The automaker repaid it early with interest. The report also cited billions in EV credits and emissions-credit programs, with regulatory-credit sales exceeding $14 billion since 2008.
Price Action: SpaceX shares jumped 19% in their Friday debut, lifting its valuation above $2.1 trillion and officially making Musk a trillionaire. Tesla shares ended 2% higher.
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