Musk has stated that he does not believe the U.S. government should provide
subsidies to companies but should instead use a
carbon tax to price in the negative
externality of
air pollution and discourage "bad behavior." Musk argues that the
free market would achieve the "best solution," and that producing environmentally unfriendly vehicles should come with its own consequences.
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Musk's statements have been widely criticized, with
Stanford University Professor
Fred Turner noting that "if you're an entrepreneur like Elon Musk, you will take the money where you can get it, but at the same time believe as a matter of faith that it's entrepreneurship and technology that are the sources of
social change, not the state. It is not quite self-delusion, but there is a habit of thinking of oneself as a free-standing, independent agent, and of not acknowledging the subsidies that one received. And this goes on all the time in Silicon Valley."
[168] Author
Michael Shellenberger argued that "in the case of Musk, it is hard not to read that as a kind of defensiveness. And I think there is a business reason for it. They are dealing with a lot of investors for whom subsidies are not the basis for a long-term viable business, and they often want to exaggerate the speed with which they are going to be able to become independent." Shellenberger continues, "we would all be better off if these entrepreneurs were a bit more grateful, a bit more humble." While journalist and author
Jim Motavalli, who interviewed Musk for
High Voltage, his 2011 book about the electric vehicle industry, speculated that "Elon is now looking at it from the point of view of a winner, and he doesn't want to see other people win because they get government money – I do think there is a tendency of people, once they have succeeded, to want to pull the ladder up after them."
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