It's like an out of control police force, who, operating on an anonymous tip, kicks down your door and beats you, violating your civil rights. Yes, that's bad, but it's even more humiliating when you find out that the guy who dropped the tip was supposedly a friend you had been working with, who involuntarily sacrificed you as a pawn for what he perceived as the "greater good."
Sometimes, I think this is also the reason why the government clings to cost-plus contracting: with fixed price, they have to be disciplined about the requirements because once the fixed price contract is in effect, they can't tinker with it any further. Cost-plus, they can keep changing requirements, and the contractor will simply roll it into the bill.
This of course is assuming that he can even get his production numbers up, and right now, Tesla is still struggling to scale up from the 500/month they're producing right now. I'm not saying he can't do it, but I say the odds are far against him.
I've also talked with a few industrial engineers that specialize in this type of manufacturing, and at least based on the videos released, the way his assembly lines are setup right now are not going to scale up well. For him to meet his production goals, he's going to have to completely redo the way he does fabrication and final assembly. Should also be pointed out too that the NUMMI plant they're operating out of produced at its peak 6,000 vehicles a week: a healthy number, but an order of magnitude lower than his goals. He will have to expand, probably build more factories, and that will take time. Again, these are just the issues of the factory, it doesn't even go into the other issues.
what does the labor market of the future offer for the common person? I couldn't say. But it will be something. It is always something.
Also, look at the people who are railing against this particular piece of spending. Congressman Lamar Smith for example, has been aggressively tinkering with NSF and USG scientific funding in general, believing that the US should slash funding of sociological, psychological, and climate change research. I'm sure he threw the mind control one in there to help rile people up for his crusade against what he views as wasteful government spending.