News
Elon Musk clarifies Tesla, SpaceX government subsidies in latest feud
Elon Musk has shared his latest insights on government subsidies for Tesla and SpaceX, as part of a conversation taking place on X over the last few days.
Vinod Khosla, owner of the firm Khosla Ventures, exchanged posts with Musk on X last week and into Saturday night, in an overall sweeping conversation on illegal immigration, government subsidies, and the 2024 election. On Saturday evening, however, the discussion turned toward Musk’s own companies, when Khosla questioned Musk on whether Tesla “could have survived” without electric vehicle (EV) subsidies, also asking how much money SpaceX receives from the government.
“How much government money does SpaceX get? Could Tesla have survived without EV subsidies?” Khosla wrote. “Unfortunately Twitter doesn’t get government money I guess. Which of these would you rather the government didn’t spend money on and reduce the deficit?”
In response, Musk defended his companies, saying that EV subsidies only make up a small portion of Tesla’s revenue, while SpaceX doesn’t get subsidies at all. In addition, the Tesla CEO pointed the conversation toward oil and gas companies, which he notes are getting massive tax breaks from the federal government.
Read Musk’s full response to Khosla below:
Do some research before you display your utter ignorance. SpaceX gets no subsidies and received half as much as Boeing for astronaut transport, but did 100 percent of the work.
As for Tesla, take a minute to read our public filings and you will see that EV incentives represent a minor part of our revenue. On the other hand, oil & gas companies get massive tax breaks that exceed those given to the EV industry by several orders of magnitude.
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Wake up.
Musk’s endorsement of Donald Trump in the 2024 U.S. election
The response came as part of talks about 2024 Republican Presidential candidate Donald Trump, who Khosla claimed “hates immigrants like [him.]” It also comes as the latest of Musk’s conversations on X in support of the former President this year.
The Tesla CEO officially endorsed Trump in this year’s election in July, and he has been increasingly sharing content related to subjects like illegal immigration, the federal budget deficit, and overreach of government agencies over the last several months.
Donald Trump says he will hire Elon Musk for this position, and he’s ‘agreed’
Musk’s other statements on subsidies in the last few years
Musk has also spoken up on government subsidies multiple times in the past, highlighting in a post on X in July that he wouldn’t mind seeing all subsidies go away.
Take away the subsidies. It will only help Tesla. Also, remove subsidies from all industries!
Just days later, Musk also added that a “surprising number of people think that Tesla survives on subsidies,” noting that the claim was only true of Tesla’s competitors.
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He has also made statements on ending government subsidies as far back as 2021, when the Tesla CEO told the Wall Street Journal that the U.S. should avoid passing President Joe Biden’s Build Back Better bill, due to the massive government deficit that already exists.
Honestly, I would just can this whole bill. Don’t pass it. That’s my recommendation.
RELATED:
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.
Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.
Powerwall Lease is now available with Tesla Electric in Texas
Whole-home backup for $35/month, with a low fixed electricity rate
– Two Powerwalls, $0 installation
– Storm Watch outage protection
– One app to manage it all pic.twitter.com/oTzqc6K3aF— Tesla Energy (@teslaenergy) August 13, 2026
This credit lowers the effective cost to roughly $35 per month plus applicable tax.
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Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.
The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.
Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.
The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.
Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.
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Elon Musk continues to tease the unveiling event for the Tesla Roadster, a continuing trend that has grown into a bigger game of “When” for fans who have been waiting years for the car to finally enter production.
A video shared on X of the Joe Rogan Experience podcast that Musk appeared on last year, teasing the Roadster unveiling, was shared once again on the social media platform. The poster said the Roadster event will be “unforgettable.”
Musk agreed:
Yes
— Elon Musk (@elonmusk) August 12, 2026
The timing is interesting because just yesterday, Musk said that we will be getting flying cars, and for years, Tesla has hinted that it could develop a SpaceX cold gas thruster package that would help the car float or fly for a short period of time.
It would be reasonable to assume Tesla’s major delays with this unveiling event are likely caused by the company’s need to break the rules and push the envelope on nearly everything. Last July, Lars Moravy, Tesla’s VP of Vehicle Engineering, said:
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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind blowing. We showed Elon some cool demos last week of the tech we’ve been working on and he got a little excited.”
The latest updates that Tesla has given us are that the Roadster is in design development, and it did have several potential dates for an unveiling event this year, including April. It was then pushed to August.
However, there are no clues as to when Tesla will be ready, and fans are certainly getting frustrated with the delays.
For what it is worth, Franz von Holzhausen told Jay Leno this week that the event would be “very soon.”
We sure hope.
Lifestyle
Tesla’s driverless Cybercab just passed a big test with State Governor
Florida’s governor rode Tesla’s Cybercab at a closed test track and called the experience impressive.
Florida Governor Ron DeSantis rode in a Tesla Cybercab on a closed test track this week and came away impressed, posting on X that the vehicle “successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.” He called the ride “impressive.”
The stop was part of a broader event Monday at SunTrax, a 775 acre state owned proving ground in Auburndale that Florida built specifically to test autonomous and connected vehicles before they reach public roads. Standing next to a gold Cybercab, DeSantis described the car in plain terms: “You go in there and you just sit. You have a screen. There’s no steering wheel, no pedals. Clearly these things could be very beneficial.”
We took a ride on a robotaxi on the Suntrax course and it successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.
Impressive! https://t.co/FVAkzFLz3r
— Ron DeSantis (@RonDeSantis) August 11, 2026
DeSantis paired the praise with a caveat that has followed autonomous vehicles since the category existed. “You don’t want to be in an autonomous vehicle and it drives you into a ditch. That would not be good,” he said, framing safety validation as the gate before wider deployment.
SunTrax, the 2.25 mile oval which the state calls the only high speed autonomous vehicle test track in the Southeast, can simulate rain, pedestrian crossings, hills and crowded urban conditions at highway speeds, letting companies push a car past what an early public rollout would risk. Tesla, Waymo and Beep all use the facility, and Florida’s regulatory approach, among the most permissive for autonomous vehicles in the country, doesn’t require a human operator inside a fully autonomous car.
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Tesla has reason to want the blessing of Florida and states beyond, as the Cybercab entered volume production at Gigafactory Texas this spring and has since self certified as SAE Level 4 under Texas law. Public road testing so far has kept a safety monitor in the passenger seat, and Florida is where Tesla has been expanding its existing Model Y based Robotaxi service instead, adding Miami in July and then Orlando and Tampa two weeks later. A closed track endorsement from a sitting governor doesn’t change any of that, but it does put Tesla’s newest hardware in front of a state that has already shown it will move fast on rules.
Tesla launches Powerwall Lease for affordable home backup
Elon Musk teases Tesla Roadster unveiling once again
