--- title: "Elon Musk Is Shutting Down the Part of the Government That Helped Him Save Tesla" description: "Elon Musk's Department of Government Efficiency has shut down the same DOE's Loan Programs Office that once allowed Tesla to flourish." date: "2025-04-28" modified: "2025-04-28" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/elon-musk-shutting-down-tesla-doe-loans" categories: - "Advanced Transport" - "Elon Musk" - "Future Society" - "Tesla" - "The Industrialists" tags: - "department of energy" - "doge" - "elon musk" - "SpaceX" - "tesla" --- # Elon Musk Is Shutting Down the Part of the Government That Helped Him Save Tesla ![Elon Musk's Department of Government Efficiency has shut down the same DOE's Loan Programs Office that once allowed Tesla to flourish.]() *\Image: Jabin Botsford/The Washington Post via Getty Images\* 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. **More on DOGE:** *[Trump Admin Cancels Programs to Protect Children From Toxic Chemicals]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()