Elon Musk’s fortunes have taken a noticeable hit recently, especially following his efforts to assist President Donald Trump in cutting government waste. For years, I’ve described Musk as a welfare billionaire—not as an insult, but as a reality of how his wealth has been built.
To be clear, Elon Musk likely would have been wealthy regardless of government support. However, whether he would have reached his current net worth status without substantial government subsidies and contracts is a different question altogether. While the House of Saud—the royal family of Saudi Arabia—still possesses far more consolidated wealth, Musk is frequently labeled the richest individual on Earth based on fluctuating stock valuations.
But those valuations are heavily inflated by government support, especially through tax incentives, green energy mandates, and exclusive contracts. Musk’s business empire—especially Tesla and SpaceX—has long been reliant on taxpayer-backed initiatives, many of which were enabled through political goodwill.
The Fallout from the “Big Beautiful Bill”
Now that President Trump has passed what’s being called the “Big Beautiful Bill”—a sweeping piece of legislation aimed at deregulating key industries and restoring market competition—Musk finds himself on the losing side. The bill includes provisions that directly benefit industries previously hampered by the very regulations that favored Musk’s enterprises.
Take, for example, coal-based steel production and internal combustion engine manufacturers. These sectors are now receiving support and a fair shot at competing in the U.S. marketplace. That means Tesla is no longer operating with an artificial advantage—it must now compete on a level playing field.
Understandably, Musk is frustrated. After lending support to the Trump administration’s cost-cutting efforts, he’s now watching his own government subsidies evaporate. Even worse, his standing with progressive circles has taken a hit, as many on the political left view him as having betrayed their environmental agenda.
Green Energy vs. Market Reality
The truth is that electric vehicles and ESG initiatives are still not cash-flow positive at scale. The “green agenda” Musk promotes is dependent on long-term investment and continuous public support. In contrast, Saudi Arabia’s oil revenue and industrial infrastructure are already cash-flow generating assets—not speculative.
By backing Trump, Musk helped usher in reforms that weakened his own financial base. And now, with the “Big Beautiful Bill,” Trump is supporting industries that were previously sidelined for not aligning with ESG narratives—offering them a real chance to compete in a freer market.
Did Elon Musk Matter in Trump’s Victory?
Musk’s influence on Trump’s political resurgence is questionable. Trump’s base showed up in full force in 2020, and again in 2024, delivering him a decisive victory. Elon Musk’s ownership of X (formerly Twitter) and the popularity of Truth Social may have played a role in the media ecosystem, but it’s hard to credit Musk with Trump’s landslide win.
After all, Kamala Harris was widely unpopular—even within her own party—and Joe Biden’s presidency had become increasingly unpopular. The conditions were already in place for a Trump victory, with or without Musk’s endorsement.
Final Thoughts
Elon Musk’s anger is understandable. He supported a political movement that ultimately undercut the very subsidies that built his empire. But that’s the nature of free markets and democratic shifts—the playing field changes.
Musk now faces a tough road ahead. Tesla and his other ventures will need to compete without government training wheels. Whether he embraces that challenge or continues to protest will determine how history views his next chapter.
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