Since 2014, a state program to subsidize electric cars has delivered over $90 million in payments to subsidize Tesla, Elon Musk's car company – and the pace of those payments has been increasing under Governor Healey's administration.
The Commonwealth's MOR-EV program has doled out over $162 million in subsidies to new-car buyers as of February 2025. In the decade-long history of the program, more than half of its payments – $90.5 million – have gone to subsidize cars sold by Tesla, Inc.
But in past 18 months, as Musk has consolidated more power in Washington D.C. and made threats to major government programs, an even higher share of the program's payments has bankrolled Tesla sales.
In just the three months between Election Day and February 5th (the last date for which data is currently available), Massachusetts sent $8.6 million in direct payments to buyers at Tesla dealerships.
Taxpayers helping millionaires helping Elon Musk
The ostensible aim of the MOR-EV program is to reduce climate-heating pollution from Massachusetts roadways by encouraging people to buy electric cars.
However, as we've previously reported, new car buyers are usually from wealthier households, and a majority of the MOR-EV program's payments have historically gone disproportionately to high-wealth suburban ZIP codes like Weston and Lexington.
Additionally, a 2022 cost-effectiveness study of the program concluded that more than half of subsidy recipients were "free riders" who would have bought a new electric car with or without a check from the government.
In August 2023, Governor Healey's administration introduced a number of reforms to the program in an effort to address these problems. The program started offering an additional $1,500 subsidy for lower-income households, and also made rebates available to used car purchases.
More significantly, the Commonwealth boosted its subsidies from $2,500 to $3,500, and started offering rebates at the "point of sale" – that is, at the car dealership.
Those changes fueled a surge in MOR-EV payouts – and they were especially lucrative for Tesla.
In the nine years before August 2023, when those changes went into effect, Tesla buyers collected $35.6 million, which accounted for 44 percent of the MOR-EV program's payments.
In the 18 months since August 2023, the Commonwealth has spent $54.9 million on Tesla subsidies, which accounts more than two-thirds of the program's spending in that period.
Lawmakers don't want to talk about it
In January, after Tesla CEO Elon Musk delivered what many of his own supporters interpreted as a Nazi salute at the inauguration of President Donald Trump, StreetsblogMASS reached out to a number of lawmakers to ask them whether they thought the subsidies for Tesla are still an appropriate use of the state's funds.
We sent multiple email inquiries to the Governor's office, Assistant Senate Majority Leader Mike Barrett of Lexington, and House Ways and Means Chair Rep. Aaron Michlewitz of Boston.
None of them responded or acknowledged our inquiries (we'll update this story if they decide to get back to us).
You can look up how to contact your lawmakers here.
If your local lawmakers have an opinion on this issue, please let us know in the comments section below, or email mass.editor@streetsblog.org.
