So you're against government subsidies in general? This "free money" is part of pro-environmental policy. The point is to subsidize development in areas where it may be economically irrational without a subsidy, especially when the non-economic benefits are worthwhile to society.
The nice thing about subsidies is they create a cascade effect. Once one company is having success in alternative energy, older companies are forced to catch up. The oil companies and automotive companies have all been dragging their feet. Tesla has already forced auto companies to ramp up EV development.
Also, the government doesn't have to "pick winners." They can give the most money to Tesla, since they're clearly a better bet than an unproven startup, and still give money to new startups. Once a startup proves itself at the level Tesla has, it can get more money.
There are plenty of subsidies to go around. It seems like a few billion dollars is a bargain price to pay for accelerated development of alternative energy.