Elon Musk Is Shutting Down the Part of the Government That Helped Him Save Tesla

Billionaire and Tesla CEO Elon Musk's businesses have greatly relied on government funds, rescuing them from certain doom on several occasions.

A prominent example was in early 2010, when Tesla received a $465 million loan through the Department of Energy's Loan Programs Office that allowed it to establish crucial supply lines for its Model S production and buy the Fremont factory in California from a bankrupt Toyota and General Motors venture.

It was a massive, taxpayer-funded lifeline that came at an extremely important time for Musk's EV maker.

But over 15 years later, in a staggering irony, Jalopnik reports that the billionaire's Department of Government Efficiency has shut down the same DOE's Loan Programs Office that once allowed Tesla to flourish.

It's a textbook example of Musk's hypocrisy, as he yanks the ladder up behind him, securing his own bottom line at the expense of those who follow. Other EV makers, including Rivian, have also benefited greatly from DOE funding that could soon run dry.

At the same time, Musk may be squandering the enormous opportunity the DoE gifted his carmaker over a decade ago. Earlier this month, Tesla revealed that its net income had plummeted by an astonishing 71 percent, in large part the result of the CEO's seemingly relentless efforts to tank the company's brand and reputation.

Musk's DOGE has dealt the DOE a devastating blow. More than 1,200 employees have taken up the so-called department on its "deferred resignation program," as Latitude Media reported earlier this month.

The Loan Programs Office, which grew substantially under president Joe Biden, has seen half of its staff walk, undermining the operations of current loan recipients, including a nuclear plant and sustainable aviation fuel project. Companies Kore Power and Freyr Battery also scrapped plans for their plans to expand into the battery manufacturing space after DOGE froze their loans.

Musk's space company SpaceX has also historically relied on major federal contracts to stay afloat. The firm was built on $38 billion in government contracts, loans, subsidies, and tax credits over the last 20 years, as the Washington Post reported in February.

And SpaceX is likely to continue to be awarded billion-dollar contracts, from rural broadband initiatives to major rocket launch services for NASA.

In short, Musk is making it clearer than ever before exactly who he is: a greedy, self-interested profiteer who wants privileges he's actively cutting for others.

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