Elon Musk Rejects Claims Government Support Built TSLA And SPCX — Says Trump’s EV Credit Cuts Sent More Buyers To Tesla – Stocktwits
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Fresh off SpaceX's blockbuster stock market debut, Elon Musk is pushing back against claims that government support was responsible for the rise of both SpaceX (SPCX) and Tesla Inc. (TSLA).
SPCX’s blockbuster public debut on Friday sent shares soaring 19% in their first trading session, lifting the rocket maker's valuation above $2.1 trillion and making it the sixth-most valuable public company in the U.S. Meanwhile, TSLA shares ended 2% higher on Friday.
Musk’s response was triggered by a report, which said that government grants, loans, contracts and regulatory support played a key role in building Tesla and SpaceX, with early Tesla investor Ross Gerber saying, "There would not be (Tesla and SpaceX) if it weren't for the government."
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However, Musk rejected the claim on X: "The article is totally false btw. You can add up every government incentive my companies have ever received and they amount to less than 2% of the value of SpaceX and Tesla!" He also said that many of the incentives actually benefited rivals more than his own companies. "And many of these incentives actually helped our competitors disproportionately to Tesla or SpaceX," Musk said.
To make his case, Musk pointed to the elimination of the federal $7,500 EV tax credit. "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 said.
Musk’s stand is consistent with a position he took long before the credit was eliminated. In 2024, as Trump's incoming administration considered ending EV subsidies, Musk publicly supported the move: "I think we should get rid of all credits." Months earlier, he had also said on X: "Take away the subsidies. It will only help Tesla." The Trump administration ultimately ended the EV tax credit in 2025. The $7,500 federal EV tax credit helped Tesla and other automakers charge more for their vehicles than the market may otherwise have supported.
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SpaceX received over $500 million in grants, including a $278 million NASA award in 2006 and a $1.6 billion NASA contract in 2008, the report said. Musk himself acknowledged NASA's role in 2012, saying: "The fact (is) that we could not have started SpaceX, nor could we have reached this point, without the help of NASA."
Tesla, meanwhile, received a $465 million Department of Energy loan in 2010 that helped fund development of the Model S. The report also flagged billions of dollars coming in through EV tax credits and emissions-credit programs, with regulatory-credit sales alone contributing more than $14 billion since 2008.
Musk's defense of EV credit cuts is also notable given his brief fallout with Trump last year. The relationship between the two deteriorated after Musk criticized Trump's tax-and-spending package, calling it a "disgusting abomination" and warning that it would worsen federal deficits. Trump, in turn, had said: "Elon is upset because we took the EV mandate."
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Musk rejected the claim and had publicly supported keeping the EV incentive cuts in place: "Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK," Musk said on X at the time.
On Stocktwits, retail sentiment for SPCX was 'extremely bullish' amid 'extremely high' message volumes, while TSLA sentiment remained 'bullish' amid 'normal' chatter levels.
So far this year, TSLA stock has lagged its “Magnificent Seven” peers, making it the group’s third-worst performer, with a 10% decline.
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