Elon Musk's companies have always depended on government money - and he's has always been up front about it
Rather, they're government contractors, dependent on taxpayer money to stay afloat.
Musk tackled the complaint against last week, in response to an article in the Los Angeles Times by Jerry Hirsch.
Hirsch's piece was a lengthy analysis of all the government assistance that has flowed in Tesla's direction.
Musk attacked the article saying in an interview on CNBC that, "if [Hirsch] was paid by an oil and gas industry lobby, he couldn't have written a more favorable article for them."
In his interview on CNBC, Musk referenced a blog post he published last year that clarified the terms of the deal, which Musk said made Hirsch's article "even more inexcusable because he completely ignores what was written there."
In that post, Musk had written:
For his part, Hirsch argued that Tesla, as well as Musk's other companies, need government subsidies to survive.
"Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times," Hirsch wrote. "The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups."
This is the major criticism of Musk: he presents himself as a hero of capitalism while investing in and running companies that wouldn't exist without government funding and support.
"Elon Musk is addicted to government money!"
You hear it all the time. We heard it last year when Jason Mattera - author "Crapitalism: Liberals Who Make Millions Swiping Your Tax Dollars" and something of an aggressive rising star in the world of conservative journalism and commentary - went on Fox News and listed Musk's offenses.
The thing is, critics of Musk who claim the man is reliant on big government to keep his companies afloat aren't wrong.
But the other thing is that Musk and his companies have never denied this.
When I was reporting on Tesla during some darks days for the startup back in 2008, the company made it abundantly clear that it needed to hit certain marks to obtain a Department of Energy loan guarantee and stay in business.
A few years later, Tesla warned in an SEC filing that its DOE guarantees represented a meaningful business risk, something that investors needed to be aware of.
"We are dependent upon our ability to fully draw down on our loan facility from the United States Department of Energy, which may restrict our ability to conduct our business," the company said in early 2010.
As for SpaceX - Musk has never pretended that there would be a SpaceX without NASA. The space agency is by far the growing private space company's most important customer.
Mattera focuses on the fact that Tesla can sell zero-emission credits in California to automakers who don't produce enough zero-emission vehicles to satisfy the state's requirements.
And of course SolarCity customers can claim tax credits when they use the company to provide solar panels. This mitigates some of the cost of installing the technology.
SpaceX, for its part, was in the right place at the right time to help NASA transition from the Space Shuttle to deep-space manned missions.
But Musk isn't trying to hide this stuff. He just happens to have two companies that are in the green-energy and green-transportation spaces - businesses that the government is actively encouraging. He's savvy and entrepreneurial in the sense that he's got his companies in the right place at the right time. The government is interested in stuff like space flight, satellite launches, electric cars, and solar power. It can leave messaging apps and social networks to Silicon Valley and its well-established venture-capital funding matrix.
You bet we're addicted to government money! Musk might say. It's a total win-win, if everything works out.
Musk would certainly argue that the benefits of what Tesla, SpaceX, and SolarCity offer outweigh the cost to the taxpayers. In fact, he would argue that his companies represent the ideal public-private partnership - maybe more than ideal Why? Because Tesla is an investment in alleviating global warning, because SolarCity is an investment in energy independence (and alleviate global warning), and SpaceX is an investment in making humanity "multiplanetary" - so that if global warming or an errant asteroid does doom Earth, we have backup through colonies on other planets in the Solar System.
You're going to need the government to help out when your ambitions are that grand.