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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.
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.
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.
-->
News
Tesla Model Y is still China’s best-selling premium EV through October
The premium-priced SUV outpaced rivals despite a competitive field, while the Model 3 also secured an impressive position.
The Tesla Model Y led China’s top-selling pure electric vehicles in the 200,000–300,000 RMB segment through October 2025, as per Yiche data compiled from China Passenger Car Association (CPCA) figures.
The premium-priced SUV outpaced rivals despite a competitive field, while the Model 3 also secured an impressive position.
The Model Y is still unrivaled
The Model Y’s dominance shines in Yiche’s October report, topping the chart for vehicles priced between 200,000 and 300,000 RMB. With 312,331 units retailed from January through October, the all-electric crossover was China’s best-selling EV in the 200,000–300,000 RMB segment.
The Xiaomi SU7 is a strong challenger at No. 2 with 234,521 units, followed by the Tesla Model 3, which achieved 146,379 retail sales through October. The Model Y’s potentially biggest rival, the Xiaomi YU7, is currently at No. 4 with 80,855 retail units sold.
Efficiency kings
The Model 3 and Model Y recently claimed the top two spots in Autohome’s latest real-world energy-consumption test, outperforming a broad field of Chinese-market EVs under identical 120 km/h cruising conditions with 375 kg payload and fixed 24 °C cabin temperature. The Model 3 achieved 20.8 kWh/100 km while the Model Y recorded 21.8 kWh/100 km, reaffirming Tesla’s efficiency lead.
The results drew immediate attention from Xiaomi CEO Lei Jun, who publicly recognized Tesla’s advantage while pledging continued refinement for his brand’s lineup.
-->“The Xiaomi SU7’s energy consumption performance is also very good; you can take a closer look. The fact that its test results are weaker than Tesla’s is partly due to objective reasons: the Xiaomi SU7 is a C-segment car, larger and with higher specifications, making it heavier and naturally increasing energy consumption. Of course, we will continue to learn from Tesla and further optimize its energy consumption performance!” Lei Jun wrote in a post on Weibo.
Elon Musk
SpaceX’s Starship program is already bouncing back from Booster 18 fiasco
Just over a week since Booster 18 met its untimely end, SpaceX is now busy stacking Booster 19, and at a very rapid pace, too.
SpaceX is already bouncing back from the fiasco that it experienced during Starship Booster 18’s initial tests earlier this month.
Just over a week since Booster 18 met its untimely end, SpaceX is now busy stacking Booster 19, and at a very rapid pace, too.
Starship V3 Booster 19 is rising
As per Starbase watchers on X, SpaceX rolled out the fourth aft section of Booster 19 to Starbase’s MegaBay this weekend, stacking it to reach 15 rings tall with just a few sections remaining. This marks the fastest booster assembly to date at four sections in five days. This is quite impressive, and it bodes well for SpaceX’s Starship V3 program, which is expected to be a notable step up from the V2 program, which was retired after a flawless Flight 11.
Starship watcher TankWatchers noted the tempo on X, stating, “During the night the A4 section of Booster 19 rolled out to the MegaBay. With 4 sections in just 5 days, this is shaping up to be the fastest booster stack ever.” Fellow Starbase watcher TestFlight echoed the same sentiments. “Booster 19 is now 15 rings tall, with 3 aft sections remaining!” the space enthusiast wrote.
Aggressive targets despite Booster 18 fiasco
SpaceX’s V3 program encountered a speed bump earlier this month when Booster 18, just one day after rolling out into the factory, experienced a major anomaly during gas system pressure testing at SpaceX’s Massey facility in Starbase, Texas. While no propellant was loaded, no engines were installed, and no one was injured in the incident, the unexpected end of Booster 18 sparked speculation that the Starship V3 program could face delays.
-->Despite the Booster 18 fiasco, however, SpaceX announced that “Starship’s twelfth flight test remains targeted for the first quarter of 2026.” Elon Musk shared a similar timeline on X earlier this year, with the CEO stating that “ V3 is a massive upgrade from the current V2 and should be through production and testing by end of year, with heavy flight activity next year.”
Considering that Booster 19 seems to be moving through its production phases quickly, perhaps SpaceX’s Q1 2026 target for Flight 12 might indeed be more than feasible.
News
Elon Musk makes a key Tesla Optimus detail official
“Since we are naming the singular, we will also name the plural, so Optimi it is,” Musk wrote on X.
Tesla CEO Elon Musk just made a key detail about Optimus official. In a post on X, the CEO clarified some key wording about Optimus, which should help the media and the public become more familiar with the humanoid robot.
Elon Musk makes Optimus’ plural term official
Elon Musk posted a number of Optimus-related posts on X this weekend. On Saturday, he stated that Optimus would be the Von Neumann probe, a machine that could eventually be capable of replicating itself. This capability, it seems, would be the key to Tesla achieving Elon Musk’s ambitious Optimus production targets.
Amidst the conversations about Optimus on X, a user of the social media platform asked the CEO what the plural term for the humanoid robot will be. As per Musk, Tesla will be setting the plural term for Optimus since the company also decided on the robot’s singular term. “Since we are naming the singular, we will also name the plural, so Optimi it is,” Musk wrote in his reply on X.
This makes it official. For media outlets such as Teslarati, numerous Optimus bots are now called Optimi. It rolls off the tongue pretty well, too.
Optimi will be a common sight worldwide
While Musk’s comment may seem pretty mundane to some, it is actually very important. Optimus is intended to be Tesla’s highest volume product, with the CEO estimating that the humanoid robot could eventually see annual production rates in the hundreds of millions, perhaps even more. Since Optimi will be a very common sight worldwide, it is good that people can now get used to terms describing the humanoid robot.
-->During the Tesla 2025 Annual Shareholder Meeting, Musk stated that the humanoid robot will see “the fastest production ramp of any product of any large complex manufactured product ever,” starting with a one-million-Optimi-per-year production line at the Fremont Factory. Giga Texas would get an even bigger Optimus production line, which should be capable of producing tens of millions of Optimi per year.
Tesla Model Y is still China’s best-selling premium EV through October
SpaceX’s Starship program is already bouncing back from Booster 18 fiasco
