Elon Musk's Tesla benefited from stimulus, but he opposes more now

A decade before Tesla became the world’s most valuable automaker by market capitalization, it received a $465-million federal loan to design electric vehicles and build them in Fremont, California.
By : Bloomberg
| Updated on: 25 Jul 2020, 11:11 AM
Tesla electric vehicles sit parked outside the company's factory in Fremont, California. (Bloomberg)
Tesla electric vehicles sit parked outside the company's factory in Fremont, California. (Bloomberg)
Tesla electric vehicles sit parked outside the company's factory in Fremont, California. (Bloomberg)
Tesla electric vehicles sit parked outside the company's factory in Fremont, California.

Elon Musk, whose Tesla Inc. was a major beneficiary of government stimulus in the wake of the last global financial crisis, has soured on the concept.

The outspoken chief executive officer of both Tesla and US government contractor SpaceX tweeted Friday that “another government stimulus package is not in the best interests of the people," in his opinion.

A decade before Tesla became the world’s most valuable automaker by market capitalization, the company survived the Great Recession by the skin of its teeth -- in Musk’s own words -- thanks in part to a $465 million federal loan to design electric vehicles and build them in Fremont, California. The company then went public, repaid the loan early and now employs about 20,000 people in the Bay Area alone.

Similar Cars

Find More Cars
Hyundai Kona Electric (HT Auto photo)
Hyundai Kona Electric
cc | Electric | Automatic
₹23.79 - 23.98 Lakhs**Ex-showroom price
Maruti Suzuki Baleno Facelift (HT Auto photo)
Maruti Suzuki Baleno Facelift
1197 cc | Petrol | Manual
₹6.5 - 10 Lakhs**Ex-showroom price
Kia Sonet (HT Auto photo)
Kia Sonet
1197 cc | Petrol | Manual | 18.4 kmpl
₹6.79 - 13.55 Lakhs**Ex-showroom price
Maruti Suzuki Dzire (HT Auto photo)
Maruti Suzuki Dzire
1197 cc | Petrol | Manual | 23.26 kmpl
₹5.89 - 9.09 Lakhs**Ex-showroom price
Tata Nexon (HT Auto photo)
Tata Nexon
1199 cc | Petrol | Manual | 17.4 kmpl
₹7 - 13.24 Lakhs**Ex-showroom price

(Also read: Tesla in launch mode as Elon Musk plans two electric cars after Cybertruck)

Before Tesla obtained the federal loan, Musk was clear: without government support, the company -- then a boutique maker of a $109,000 sports car -- would have to delay the rollout of a less expensive electric sedan.

“We can’t move forward with that without a major amount of capital," the CEO said in a December 2008 interview. “If we don’t get any government funding then what we need to do is we need to wait until the capital markets recover, which could be a year or two years from now."

Congress is now working on another stimulus package to help revive a US economy ravaged by the coronavirus pandemic.

First Published Date: 25 Jul 2020, 11:11 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city