Investor Ross Gerber, co-founder of Gerber Kawasaki, thinks Federal Contracts have been instrumental in Tesla Inc. (NASDAQ:TSLA) and SpaceX's success.



Check out the current price of TSLA here.



<h2>Gerber Acknowledges The Importance Of Government Contracts</h2>



The investor shared his thoughts in a post on the social media platform X on Tuesday, detailing the importance of Federal contracts for Elon Musk's companies. &#34;I love tesla and space X products,&#34; Gerber said in the post. &#34;However it wouldn’t be fair not to include the massive contribution the US government made to help both be successful,&#34; the investor shared.



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<blockquote>I love tesla and space X products. However it wouldn't be fair not to include the massive contribution the US government made to help both be successful. $tsla— Ross Gerber (@GerberKawasaki) December 30, 2025</blockquote>
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<h2>Elon Musk's Federal Contracts, Tax Benefits</h2>



Gerber's claims do hold water, as an investigation by the Washington Post in February this year revealed that Musk's Tesla and SpaceX received over $38 billion in Federal contracts, subsidies, or loans over the past two decades.



It's worth noting that SpaceX was also reportedly a frontrunner in President Donald Trump's Golden Dome missile defense system alongside the likes of Palantir Technologies Inc. (NASDAQ:PLTR). Starlink, SpaceX's satellite internet service provider, also received $119 million in funding from Montana to bring better connectivity to over 20,000 locations in the state. 



It's also worth noting that SpaceX has paid minimal income taxes to the federal government by utilizing a legal tax benefit that allows it to offset future taxable income using more than $5 billion in losses incurred by the end of 2021. The benefit has saved SpaceX over $3 billion.



Most recently, xAI, Musk's artificial intelligence company, secured a deal with the Pentagon to deploy the AI model Grok for military and civilian use. Tesla's sales also received a major boost due to the government-backed $7,500 Federal EV Credit, which was scrapped by Trump on October 1st this year.



<h2>Elon Musk Slams Bernie Sanders</h2>



The Tesla CEO has also slammed Sen. Bernie Sanders (I-VT), calling the senator a &#34;taker,&#34; and adding that most of Musk's assets are in the form of shares in his two major companies, Tesla and SpaceX, which only increase in value based on providing better goods and services to consumers.



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Tesla scores well on the Momentum and Quality metrics, but offers poor Value. It also has a favorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!



Price Action: According to Benzinga Pro data, TSLA slid 0.08% to $454.05 during the after-hours trading session.



Check out more of Benzinga's Future Of Mobility coverage by following this link.



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Photo courtesy: Shutterstock

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Investor Ross Gerber emphasizes the significant role of federal contracts in the success of Tesla and SpaceX. He notes that these companies have received over $38 billion in federal support over the past two decades, including contracts and subsidies. Gerber highlights the importance of government contributions, particularly in light of SpaceX's minimal tax payments due to legal benefits. He also mentions Tesla's boost from the federal EV credit, which was recently eliminated. Gerber's comments reflect a broader discussion on the relationship between government support and corporate success.

- Investor Ross Gerber emphasizes the crucial role of federal contracts in the success of Tesla and SpaceX, acknowledging significant government contributions.  
- His comments reflect findings that Elon Musk's companies have received over $38 billion in federal contracts, subsidies, and loans, alongside notable tax benefits.  
- Additionally, recent contracts for SpaceX and federal incentives for Tesla have impacted the companies' growth trajectories, despite some political controversies surrounding Musk's wealth and tax contributions.

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Tesla, SpaceX Benefited Heavily From Federal Contracts, Says Ross Gerber: 'Massive Contribution...'