If you're wondering how Elon Musk built his empire, investor Ross Gerber has a simple answer: Uncle Sam helped. A lot.

Gerber, who co-founded Gerber Kawasaki, took to X on Tuesday to remind everyone that Tesla Inc. (TSLA) and SpaceX didn't exactly pull themselves up by their bootstraps alone. "I love tesla and space X products," Gerber wrote. "However it wouldn't be fair not to include the massive contribution the US government made to help both be successful."

Following The Money Trail

Gerber isn't just throwing shade here—the numbers back him up. A Washington Post investigation from February revealed that Musk's companies have collected over $38 billion in federal contracts, subsidies, and loans over the past twenty years. That's not pocket change, even by billionaire standards.

SpaceX, for instance, has become a key player in government projects. The company was reportedly a frontrunner for President Donald Trump's Golden Dome missile defense system, competing alongside Palantir Technologies Inc. (PLTR). Meanwhile, Starlink—SpaceX's satellite internet service—scored $119 million in funding from Montana alone to bring connectivity to over 20,000 locations across the state.

The Tax Advantage

Here's where it gets interesting. SpaceX has paid minimal federal income taxes by using a perfectly legal tax strategy: offsetting future taxable income with losses. The company had accumulated more than $5 billion in losses by the end of 2021, which it can use to reduce its tax bill going forward. This maneuver has saved SpaceX over $3 billion so far.

On the Tesla side, the $7,500 federal EV tax credit gave the automaker's sales a significant boost—at least until Trump scrapped the credit on October 1st this year. And Musk's AI venture, xAI, recently secured a Pentagon contract to deploy its Grok AI model for both military and civilian applications.

Musk Fires Back at Critics

Not everyone buys Musk's self-made narrative, and he's got critics. Senator Bernie Sanders is one of them, and Musk hasn't been shy about returning fire. The Tesla CEO called Sanders a "taker" and argued that most of his wealth is tied up in Tesla and SpaceX stock, which only grows when his companies deliver better products and services to customers.

It's a familiar defense from Musk: his net worth is tied to performance, not government handouts. But Gerber's point is that those handouts—or strategic investments, depending on your perspective—helped create the foundation for that performance in the first place.

Price Action: Tesla (TSLA) shares slipped 0.08% to $454.05 during after-hours trading, according to market data.