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Both Tesla and SpaceX have absolutely received grants, not just contracts and loans, from the government. Just last year, SpaceX requested and applied for $886 million grant from the FCC, which is nearly three times the annual budget of NPR. They were denied for that particular one, but they appealed the decision, complaining about it. I'm not sure what misinformation you are referring to. It is a matter of fact that Tesla and SpaceX have received billions of dollars of government contracts, highly preferential loans, grants, subsidies, and tax incentives. Another example, from Tesla's own report submitted to the SEC in 2020: > As part of various governmental responses to the pandemic granted to companies globally, we received certain payroll related benefits which helped to reduce the impact of the COVID-19 pandemic on our financial results. This was at a time in which Musk was railing against government bailouts. Tesla never gave more details on the government handouts this particular line was referring to. It goes on and on. |
Because FCC asked private companies to put in bids. So companies responded.
Its not that SpaceX just went to the FCC and asked for money.
> It is a matter of fact that Tesla and SpaceX have received billions of dollars of government contracts, highly preferential loans, grants, subsidies, and tax incentives.
These things have to be analyzed more systematically and in comparison to their industry.
Tesla received a lone for Model S production, both Ford and GM also received loans. Tesla paid it back, Ford and GM have not yet done so.
Tesla received intensive for factories, so do all large industrial facilities.
ZEV credits are a universal mechanism, not given preference to any automaker.
Same for EV Tax Credit, applies to all car maker.
Tesla, I would argue has received very little in direct subsidy. The loan guarantee was small (400M and paid back quickly).
A drop in the bucket compared to GM. Even foreign companies got access to EV tax credit.
I could do the same for SpaceX.
Yes, Musk companies receive government help. But so do all companies in these industry. Having a space company without close ties to government simply isn't happening right now. It would be more viable for Tesla, but the US government has been mucking around in the care industry for 100 years and their international competitors do so to.
The misinformation is that government picked winners and that Musk companies are successful because of these subsidies. That the success of Tesla and SpaceX are because of subsidies. These myths are often repeated.