'Keep Cutting 'Til The Screaming Starts'—Elon Musk Reportedly Shutting Down The Government Loan Office That Helped Tesla With $465 Million

Adrian Volenik

Fri, May 2, 2025, 2:37 PM 4 min read

In a move that critics say could damage the future of American clean energy, Elon Musk is reportedly overseeing the dismantling of the Department of Energy’s Loan Programs Office—the very agency that helped launch Tesla (NASDAQ:TSLA) to the level where it is now with a $465 million loan back in 2010.

The Loan That Helped Spark Tesla’s Rise

Fifteen years ago, Musk’s electric vehicle startup was far from the powerhouse it is today. With little private financing available, Tesla turned to the federal government. The Department of Energy issued the loan to help Tesla secure a factory in Fremont, California and start producing the Model S.

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By 2013, Tesla repaid the loan in full, nine years ahead of schedule, including interest and a prepayment penalty. At the time, Musk said, “Since we had the ability to do it and the stock markets were good, let’s pay it back with interest and a thank you note, by the way. I said, ‘really appreciate it. Thank you.'” In a public statement, Musk added, “I hope we did you proud.”

Musk’s Government Cuts Now Target The LPO

Fast-forward to 2025: Musk, as a leader in President Donald Trump’s Department of Government Efficiency, is presiding over sweeping cuts to the Department of Energy. Latitude Media reports that more than 1,200 DOE employees have already accepted deferred resignation offers.

Staff describe the environment as “demoralizing” and “a hostile takeover,” with an internal motto to “keep cutting ’til the screaming starts.”

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The LPO, which had flourished under previous administrations by backing high-risk, high-reward energy projects, has been especially hard hit. Around half its federal workforce has reportedly resigned. Major loan recipients like Kore Power and Aspen Aerogels (NYSE:ASPN) have scrapped plans for new battery and manufacturing plants, citing frozen loans and uncertain support, according to Latitude Media.

Billions In Government Support Over Two Decades

While Musk has become a vocal critic of federal subsidies, his companies have significantly benefited from government funding. A Washington Post analysis found that Tesla, SpaceX, and Musk’s other ventures have received at least $38 billion in government contracts, subsidies, loans, and tax credits since 2003.