How Musk built his empire off of government contracts

Summary

Apple News Today: How Musk Built His Empire Off of Government Contracts
Release Date: March 3, 2025
Host: Shemitah Basu

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1. Escalating Support for Ukraine Amid Diplomatic Tensions

Shemitah Basu opens the episode by addressing the fallout from a contentious meeting in the Oval Office involving President Donald Trump, Vice President J.D. Vance, and Ukrainian President Volodymyr Zelensky. The meeting, marked by sharp exchanges, has prompted a swift response from European allies aiming to bolster Ukraine's defenses.

• Keir Starmer, UK Prime Minister, announced significant aid for Ukraine:
  • [01:00]: “Today I'm announcing a new deal which allows Ukraine to use 1.6 billion pounds of UK export finance to buy more than 5,000 air defense missiles.”
  • Additionally, Starmer proposed a nearly $3 billion loan to Ukraine, to be repaid using profits from sanctioned Russian assets. He emphasized that a “coalition of the willing” would sustain aid and maintain economic pressure on Russia, insisting that Ukraine’s participation in peace talks is "non-negotiable.”

French President Emmanuel Macron contributed to the peace proposal, indicating a one-month ceasefire across air, sea, and energy sectors, while clarifying that no European troops would be deployed at this stage.

The episode highlights the aftermath of the Oval Office meeting where tensions flared:

• [02:16]: Keir Starmer remarked, “You’re not winning this.”
• [02:21]: Volodymyr Zelensky responded, “President, we are staying in our country, staying strong.”

Despite the heated exchange, Zelensky remains committed to a mineral extraction deal, though negotiations have stalled as Treasury Secretary Scott Besant confirmed to CBS that the agreement is no longer viable.

Marco Rubio, Secretary of State, defended Trump's approach:

• [03:12]: “Shouldn't we all be happy that we have a president who's trying to stop wars and prevent them instead of start them?”

However, internal criticism persists:

• Senator Lisa Murkowski accused the administration of “embracing Putin, a threat to democracy and US Values around the world.”
• Senator Mark Kelly labeled Trump and Vance as “bullies.”

Keir Starmer summarized the situation:

• [03:49]: “The only winner in that exchange is Putin, who's a criminal. So it was a sad day for our country. It was a dumpster fire of diplomacy.”

A Russian official echoed these sentiments, suggesting the White House’s conduct was a “gift to the Kremlin,” aligning US foreign policy closer to Russia’s interests.

Looking ahead, President Trump is scheduled to address Congress, potentially outlining his administration's stance on Ukraine, while Senator Elissa Slotkin is set to present the Democratic response.

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2. Elon Musk’s Empire: A Government-Fueled Ascent

Transitioning to business, Shemitah Basu delves into an investigative report by The Washington Post uncovering the extent of government funding that has underpinned Elon Musk’s rise to becoming the world’s richest individual.

Investigative Reporter Desmond Butler reveals:

• [05:13]: “There were $38 billion in contracts, loans, subsidies and tax credits.”
• Nearly two-thirds of this funding was allocated over the past five years, with an additional $11.8 billion pending from 52 contracts across seven government agencies, including NASA and the Defense Department.

This substantial backing was pivotal during the nascent stages of Tesla and SpaceX:

• [05:54]: Butler notes, “There was a moment in 2008 when Tesla was really not in a good position and they sought a loan from the energy department for $465 million.”
• Musk actively engaged with government officials to secure this lifeline, with former Tesla employees asserting the company's survival hinged on this support.

Similarly, SpaceX benefited from NASA and Defense Department contracts, despite not always meeting required milestones, as noted by congressional investigations.

Ironically, Musk has recently advocated for the termination of many of these benefits:

• [06:46]: He has called to end subsidies across all industries and the consumer credit for electric vehicles that significantly boosted Tesla’s sales.
• His newly formed Department of Government Efficiency is working to reduce staffing budgets and contracts within the very agencies that have supported his ventures.

Butler underscores the reciprocal benefits:

• [07:21]: “The government has clearly benefited from these partnerships too.”

However, Musk's push for fiscal austerity threatens to undermine future startups seeking similar support:

• [07:45]: Butler warns, “You could see it as kind of closing the door after you walk through it.”

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3. Oscars Night: Indie Triumphs and Political Undertones

The podcast shifts focus to the recent Academy Awards, highlighting significant wins and their broader implications.

Anora, a lower-budget film, emerged as the night's standout, securing five Oscars, including Best Picture. Director Sean Baker accepted the award:

• [08:24]: “I want to thank the Academy for recognizing a truly independent film.”

With a modest $6 million budget, Baker overcame funding challenges by casting largely unknown Russian, Armenian actors, and American actress Mikey Madison. Madison's win for Best Actress was particularly surprising, overshadowing favorites like Demi Moore.

Another notable winner was No Other Land, awarded Best Documentary. Directed by Palestinian activist Basil Adra and Israeli journalist Yuval Abraham, the film addresses the destruction of Palestinian homes and calls for a cessation of ethnic cleansing in Gaza:

• [10:08]: Volodymyr Zelensky lauded the film, stating, “We call on the world to take serious actions to stop the injustice and to stop the ethnic cleansing of Palestinian people.”

Despite its critical acclaim, No Other Land struggled to gain distribution within the United States, as director Abraham explained to Variety, citing limited space for such political critiques.

The ceremony also recognized Zoe Saldana for Amelia Perez, Kieran Culkin for his supporting role in A Real Pain, and Adrien Brody for The Brutalist.

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4. Ongoing Conflict and Humanitarian Concerns in Gaza

The podcast returns to international affairs with updates on the Israeli-Palestinian conflict:

• Prime Minister Benjamin Netanyahu has halted all humanitarian aid to Gaza as the first phase of a ceasefire concludes.
• Negotiations for phase two focus on ending the war and securing the release of hostages, though progress remains uncertain.

The White House supports Israel’s decision, asserting that Hamas is uninterested in continued ceasefire talks. Conversely, Hamas maintains readiness to negotiate but condemns Israel’s blockade of aid as a war crime.

In a significant move, Secretary of State Marco Rubio utilized emergency authorities to dispatch $4 billion in weapons to Israel, marking the second such bypass of congressional approval within a month.

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5. Public Health Alert: Measles Outbreak in Texas

Health Secretary Robert F. Kennedy Jr. addresses a measles outbreak in Texas, emphasizing the critical role of the MMR vaccine:

• Kennedy wrote in Fox News, “While these vaccines are a personal choice, they can protect not only individual children from measles, but also contribute to widespread immunity.”

He highlighted that many affected individuals were unvaccinated, underscoring the necessity of vaccination to prevent further outbreaks.

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6. Figure Skating Community Honors Tragedy Victims

In the wake of a tragic midair collision over the Potomac River, the figure skating community gathered in Washington, D.C., to honor the victims, including 11 young skaters, four coaches, and 13 family members, who were en route from a training camp in Kansas.

The tribute, hosted by Olympic champions Brian Boitano and Christy Yamaguchi, featured performances from over 40 current and retired Team USA skaters. Each participant began by placing a white rose on a ringside table, symbolizing their respect and remembrance.

Desmond Butler reflects:

• [13:49]: “While it is important to mourn the lost lives, it's also important to celebrate them.”

The event was sold out and served a dual purpose of honoring the deceased and raising funds for victims' families, first responders, and the US figure skating community. A prominent theme was the call for aviation safety reform, with appeals for Congress to pass bipartisan legislation to prevent future tragedies.

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Conclusion

Shemitah Basu wraps up the episode by summarizing the day's key stories, ranging from geopolitical maneuvers and business empires to cultural triumphs and public health issues. The episode provides a comprehensive overview of the interconnectedness of politics, business, and society, offering listeners insightful analysis and diverse perspectives on current events.

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Notable Quotes:

• Keir Starmer: “The only winner in that exchange is Putin, who's a criminal. So it was a sad day for our country. It was a dumpster fire of diplomacy.” [03:49]
• Volodymyr Zelensky: “We are staying in our country, staying strong.” [02:21]
• Robert F. Kennedy Jr.: “While these vaccines are a personal choice, they can protect not only individual children from measles, but also contribute to widespread immunity.” (Paraphrased)

This episode of Apple News Today offers a nuanced exploration of Elon Musk’s reliance on government funding, the complexities of international diplomacy, the intersection of politics and culture in Hollywood, and the enduring human spirit in the face of tragedy. Whether you're tuned in or catching up, the comprehensive analysis ensures you’re well-informed on these pivotal issues.

Transcript

[Shemitah Basu]

Good morning. It's Monday, March 3rd. I'm Shemitah Basu. This is Apple News today. On today's show, how government funding helped build Elon Musk's business empire. The big winners from Hollywood's biggest night. And the figure skating community pays tribute to victims of January's midair collision. But first, after a disastrous meeting on Friday between President Trump, Vice President Vance and Ukrainian President Volodymyr Zelensky, European allies rushed to support Ukraine. And By Sunday the UK announced plans to give Ukraine access to nearly $2 billion to bolster its defenses as a first step toward a peace agreement that the UK Plans to present along with France to Trump. Here. Here's UK Prime Minister Keir Starmer.

[Keir Starmer]

Today I'm announcing a new deal which allows Ukraine to use 1.6 billion pounds of UK export finance to buy more than 5,000 air defense missiles.

[Shemitah Basu]

Starmer also offered a nearly $3 billion loan for Ukraine that would be paid back using profits from sanctioned Russian assets. And he promised Ukraine that European nations would keep aid flowing and keep economic pressure on Russia. He said a, quote, coalition of the willing would commit to def Ukraine, though he didn't say which nations would be involved. He did say, however, that Ukraine's participation in peace talks would be non negotiable.

[Keir Starmer]

We agreed that any lasting peace must ensure Ukraine's sovereignty and security and Ukraine must be at the table.

[Shemitah Basu]

French President Emmanuel Macron told the newspaper Le Figarov that the peace proposal will include a one month ceasefire by air, sea and for energy infrastructure. But he said for now, no European troops will be deployed. And Sharmer told the BBC that Trump has agreed to discuss the proposal. All of this comes after an explosive meeting at the Oval Office on Friday where Trump and Vance reprimanded Zelensky, at times shouting, you're not winning.

[Keir Starmer]

You're not winning this.

[Shemitah Basu]

You have a damn good chance of coming out okay because of us, Mr.

[Volodymyr Zelensky]

President, we are staying in our country, staying strong. From the very beginning of the war, we've been alone and we are thankful. I said thanks.

[Shemitah Basu]

You haven't been alone in this cabinet.

[Volodymyr Zelensky]

You haven't been alone.

[Shemitah Basu]

We gave you, through this stupid president, $350 billion.

[Keir Starmer]

We gave you military equipment and you.

[Shemitah Basu]

Men are brave, but they had to use our military. The White House asked Zelensky to leave after the meeting and the leaders did not end up signing a mineral extraction deal. Zelensky has said despite the blow up, he is still willing to sign that deal. But Treasury Secretary Scott Besant, who was heavily involved in negotiations, told CBS the agreement is no longer on the table. Some in Washington are supporting Trump and Vance in the way they handled the exchange, like Secretary of State Marco Rubio, who was in the Oval Office during the meeting and spoke with ABC News on Sunday.

[Marco Rubio]

Shouldn't we all be happy that we have a president who's trying to stop wars and prevent them instead of start them? And I just don't get it. I really don't. Other than the fact that it's Donald J. Trump. If this was a Democrat that was doing this, everyone would be saying, well, he's on his way to the Nobel Peace Prize.

[Shemitah Basu]

But some other Republicans have criticized the president, like Senator Lisa Murkowski, who posted on social media, the administration appears to be walking away from our allies and embracing Putin, a threat to democracy and US Values around the world. And Democrats have widely denounced Trump and Vance's conduct. Speaking to CBS yesterday, Senator Mark Kelly called them bullies.

[Keir Starmer]

I think Donald Trump was trying to look tough. J.D. vance was trying to look tough. The only winner in that exchange is Putin, who's a criminal. So it was a sad day for our country. It was a dumpster fire of diplomacy.

[Shemitah Basu]

The Washington Post reports a Russian official on Sunday said the Oval Office blow up was seen as a gift to the Kremlin and that the Trump administration's foreign policy now aligns with Russia. Tomorrow night, President Trump is scheduled to make his first address of this administration to a joint session of Congress, where he's expected to outline some of his plans for the year ahead, which could give the American people more insight into where he sees the relationship with Ukraine going. Senator Elissa Slotkin will deliver the Democratic Party's official response. She's a first term senator from Michigan, a state that split the ticket in sending her to the Senate and Trump to the White House. Now to a recent investigation from the Washington Post on Elon Musk's business empire and the government funding that helped build it. The Post combed through government data to track how much state and federal government money Musk's companies received over the last two decades. Investigative reporter Desmond Butler told us what they found.

[Desmond Butler]

There were $38 billion in contracts, loans, subsidies and tax credits.

[Shemitah Basu]

Nearly two thirds of that money was promised to Musk's companies over the last.

[Desmond Butler]

Five years, and there is an additional 11.8 billion to come.

[Shemitah Basu]

That money will come from 52 contracts Musk has already signed with seven different government agencies, including NASA, the Defense Department, and the General Services Administration. All of this money propelled Musk to becoming the world's richest person. And the Post found this government funding helped Musk's companies survive their early years, particularly Tesla and SpaceX.

[Desmond Butler]

There was a moment in 2008 when Tesla was really not in a good position and they sought a loan from the energy department for $465 million. And Musk himself really played a big part in getting that loan, in contacting government officials. And we had former high ranking employees at Tesla saying that the company probably wouldn't have made it without that.

[Shemitah Basu]

Lo with SpaceX, both NASA and the Defense Department also granted contracts that helped the company build its infrastructure. And they were aware of SpaceX's failure to meet required milestones, according to congressional investigators. These days, however, Musk has called to end some of the very benefits that helped his companies flourish.

[Desmond Butler]

During the campaign, he called for the end of subsidies across all industries. Well, there's a lot of irony in that, because had somebody else done that 20 years ago, we wouldn't have probably Tesla or SpaceX.

[Shemitah Basu]

Musk has also called to end a consumer credit for electric vehicles that experts say helped boost sales for Tesla. His Department of Government Efficiency, meanwhile, is trying to cut staffing budgets and contracts at every single agency Musk has ongoing contracts with.

[Desmond Butler]

As we watch a lot of the very exuberant cost cutting, we really wanted to point out that Elon Musk is somebody who really benefited from that partnership.

[Shemitah Basu]

The government has clearly benefited from these partnerships too, Butler points out. But if Musk continues to pursue large scale cuts, that could hurt other companies trying to follow in his footsteps, and.

[Desmond Butler]

You could see it as kind of closing the door after you walk through it. If we want to foster other successful companies, maybe the success of these companies should be an example.

[Shemitah Basu]

Now to the Oscars. The biggest winner last night was Anora, a film about a sex worker who impulsively marries the son of a Russian oligarch. It was awarded five Oscars, including the marquee prize of the evening. Best Picture director Sean Baker accepted the award.

[Marco Rubio]

One last thing.

[Keir Starmer]

I want to thank the Academy for recognizing a truly independent film. This film was made on the blood, sweat and tears of incredible indie artists and long lived independent film. Yeah, okay, thanks.

[Shemitah Basu]

The dramedy had only a $6 million budget, and Baker told NPR it was a major feat to get that funding because the cast was made up of mostly, in his words, quote, unkn known Russians and Armenians, plus American actress Mikey Madison. When Baker was shopping the project around, potential funders asked him to find more recognizable names. But Baker told NPR he chose to Stick to his guns. He took home the Oscar for best Director, best Original screenplay and best editing, becoming the first person ever to win four Oscars in one night for a single movie. But perhaps the biggest shock of the night was Madison, who's 25 years old, winning best actress for her role in the film. I grew up in Los Angeles, but Hollywood always felt so far away from me, so to be here standing in this room today is really incredible. Madison, who is one of the youngest actresses to win the prize, beat out favorite Demi Moore, whose performance in the Substance was widely celebrated in the run up to the Oscars. One of the other big winners was no Other Land, which took home the prize for best documentary. The film was directed by a collective of Palestinian and Israeli activists and it documents Israel's demolition of Palestinian homes in the occupied west bank to make room for a tank training ground. While accepting the award, directors Basil Adra, a Palestinian activist, and Yuval Abraham, an Israeli journalist, directly addressed Israel's war in Gaza.

[Volodymyr Zelensky]

We call on the world to take serious actions to stop the injustice and to stop the ethnic cleansing of Palestinian people. We made this film, Palestinians and Israelis, because together our voices are stronger. We see each other. The atrocious destruction of Gaza and its people, which must end. The Israeli hostages brutally taken in the crime of October 7, which must be freed.

[Shemitah Basu]

No Other Land was the highest grossing Oscar nominated documentary of the year. But if our American listeners are not more familiar with it, that's because it was never distributed in the United States. The filmmakers only managed to self distribute to just a few theaters. It was a darling of the international film festival circuit. But Abraham told Variety because the film is very critical of Israeli policies, it struggled to get pickup in the US where he says there is, quote, less space for this kind of criticism. His and Azra's speech was arguably the most political moment of the night, where the policies of the Trump administration and politics in general were largely left out of the conversation. The night's other big acting prizes went to Zoe Saldana for her performance in Amelia Perez. The Netflix film was nominated for 13 awards, the most of any other movie, but only took home two Kieran Culkin won for his supporting role in A Real Pain, and Adrien Brody took home best actor for the Brutalist before we let you go, a few other stories were following. Prime Minister Benjamin Netanyahu halted all humanitarian aid going into Gaza on Sunday as phase one of the ceasefire deal between Israel and Hamas came to an end. Negotiations for phase two of the deal aimed at ending the war and negotiating the release of all the remaining surviving hostages in Gaza had just started. The White House, in a statement, said they support Israel's decision and said Hamas was no longer interested in a negotiated ceasefire. Hamas said it's ready to continue ceasefire negotiations and called Israel's blocking of aid a war crime and a blatant coup against the agreement. Meanwhile, on Sunday, Secretary of State Marco Rubio used emergency authorities to send $4 billion in weapons to Israel. The New York Times reports. It's the second time in a month the administration bypassed rules requiring congressional approval to send arms to Israel. Health Secretary Robert F. Kennedy Jr. Says the measles outbreak in Texas is a call to action and that the MMR vaccine is crucial. Writing in an opinion piece for Fox News, Kennedy acknowledged that many of Texas current cases are affecting kids who were not vaccinated against measles, mumps and rubella. And he said while these vaccines are a personal choice, they can protect not only individual children from measles, but also contribute to widespread immunity and just over a month after the fatal collision between an army helicopter and American Airlines plane over the Potomac river, members of the figure skating community remembered those who were lost on that flight with a tribute show in Washington, D.C. among the people who died that day were 11 young figure skaters, four coaches and 13 of their family members who were returning from a training camp in Kansas. The tribute show featured some of the most legendary names in the sport and was co hosted by Olympic champions Brian Boitano and Christy Yamaguchi.

[Desmond Butler]

While it is important to mourn the lost lives, it's also important to celebrate them. And we'll celebrate through the language that.

[Shemitah Basu]

We know best skating. In all, more than 40 current and retired Team USA skaters participated, each starting their routine by placing a white rose on a ringside table. The sold out show also raised funds to support the victims, families, first responders and US figure skating. NBC's local station reports another big theme of the night was aviation safety reform, with a message up on the Jumbotron asking Congress to pass bipartisan safety legislation to prevent future tragedies. You can find all these stories and more in the Apple News app. And if you're already listening in the news app right now, we've got a narrated article coming up next. New York magazine has a story on the mystery of a famous footless goose from the 80s. He became a celebrity of sorts when he was given new feet in the form of a pair of baby sneakers filled with rubber padding. He even appeared in People magazine and on the Tonight show with Johnny Carson, but he was brutally murdered, and one reporter tries to figure out what happened. If you're listening in the podcast app, follow Apple News Narrated to find that story. And I'll be back with the news tomorrow.