Musk's SpaceX stake is worth over $760 billion, while his Tesla holdings are valued at $280 billion.
- David Friedberg said taxing 100% of Elon Musk's wealth would fund the U.S. government for only 77 days.
- The comment came after Elizabeth Warren renewed calls for an ultra-millionaire wealth tax.
- Friedberg is a former Google executive and co-host of the influential All-In podcast, which has close ties to Musk.
One of Elon Musk's most prominent Silicon Valley allies is coming to his defense after Sen. Elizabeth Warren (D-Mass.) renewed calls for a wealth tax, saying that even taking 100% of Musk's fortune would fund the federal government for less than three months.
Musk Ally Challenges Warren's Tax Proposal
Warren said on X: "If Elon Musk paid my ultra-millionaire wealth tax, we could pay for child care for all three and four-year-olds in America."
However, David Friedberg, founder of Ohalo Genetics and a former Google executive, challenged the argument, saying: "If Elon Musk paid 100% of his net worth ($1.4 trillion) as a tax, it would only cover federal government spending for 77 days. This isn't a tax problem."
The U.S. fiscal outlook remains under strain. The Congressional Budget Office projects a $1.9 trillion budget deficit in fiscal 2026, with annual shortfalls expected to widen to $3.1 trillion by 2036. Over the same period, public debt is forecast to climb to a record 120% of GDP. Estimates from the Congressional Budget Office show that Trump's One Big Beautiful Bill Act, now signed into law, could increase federal deficits by $3.4 trillion to over $4 trillion over the next decade.
Friedberg's comments carry added weight due to his ties to Musk's Silicon Valley circle. After working at Google, he founded Climate Corporation, which Monsanto acquired for $1 billion in 2013, before launching the venture incubator The Production Board and the agricultural biotech startup Ohalo Genetics.
He is now best known as one of the hosts of the “All-In Podcast” alongside VCs Jason Calacanis, Chamath Palihapitiya, and David Sacks. Musk has maintained close ties with the podcast and its hosts, appearing at All-In events and discussions, while the group has frequently defended his business ventures and policy views.
Musk's Trillion-Dollar Moment
SpaceX's IPO last week added over $180 billion to Musk's fortune, pushing his net worth above $1 trillion and making him the first person in history to hit the milestone. His SpaceX stake is now worth over $760 billion, while his Tesla holdings are valued at $280 billion. Together, the two positions place his fortune above the GDP of several developed countries and ahead of the combined wealth of multiple members of the world's richest list. The IPO also minted thousands of new millionaires and several new billionaires among SpaceX employees.
Musk is also increasing his influence over Tesla. Fresh regulatory filings from late Wednesday showed that Musk boosted his Tesla voting power to nearly 20% after converting stock options from his 2018 compensation package into restricted shares carrying immediate voting rights but no near-term sale rights.
Musk has previously said he wants 25% voting control of Tesla to feel comfortable pursuing advanced AI initiatives within the company. Meanwhile, he already controls more than 80% of SpaceX's voting power through super-voting shares.
Musk Rejects Subsidy Dependence Claims
The wealth-tax conversation comes after another public defense by Musk earlier this week, following reports that government support played a key role in building Tesla and SpaceX. Musk rejected the claims, saying, "The article is totally false btw. You can add up every government incentive my companies have ever received and they amount to less than 2% of the value of SpaceX and Tesla!"
He also pointed to the elimination of the federal EV tax credit as evidence that Tesla does not depend on government support. "When President Trump removed the $7500 tax credit for electric vehicles, Tesla sales actually INCREASED," Musk said.
How Do Retail Traders Feel About TSLA And SPCX?
On Stocktwits, retail sentiment for TSLA was 'bearish' amid 'normal' message volume, while SPCX sentiment was 'bullish' amid 'extremely high' message volume.
One user said, “if you put Elon Musks money into $100 bills, it would weigh 22 million pounds. Yes, really.”
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Another user said, “Elon Musk could collapse the financial system selling some shares and walking into a bank and asking for a trillion in cash.”
View this Stocktwits post
So far this year, Tesla's stock has lagged its "Magnificent Seven" peers, making it the group's third-worst performer, down about 12%.
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