A new report from Senate Democratic committee staffers claims that Elon Musk may avoid over $2 billion in financial liabilities by leveraging his influence over federal authorities.
The initiative known as Musk’s ‘Department of Government Efficiency’ has reportedly implemented comprehensive reforms in Washington, targeting a reduction in agency size and significant cuts to the federal workforce, with President Donald Trump expressing solid backing for these initiatives.
As Musk appears ready to reduce his involvement with DOGE in the near future, Democrats have accused him of utilizing his power to sidestep regulatory scrutiny, obstruct investigations, and eliminate litigation on his terms.
The 44-page report by the Democratic staff of the Senate’s Permanent Subcommittee on Investigations (PSI) highlighted that at the time of Trump’s inauguration, Musk, along with his companies, was facing at least 65 regulatory or enforcement actions from 11 federal agencies, amounting to a total of at least $2.37 billion in potential liabilities.
The memo indicates that these liabilities included $1.19 billion attributed to Tesla due to allegations of misleading statements concerning its autopilot and self-driving technologies.
Meanwhile, Neuralink reportedly faced potential liabilities amounting to $281 million for alleged inaccuracies related to the risks tied to its products.
Additionally, the company could have incurred penalties totaling $1.59 million for purported breaches of the Animal Welfare Act.
The memo states, “The consistent theme among many of Mr. Musk’s choices appears to be personal enrichment and the avoidance of obstacles that impede his interests.” It continues, “The extensive advantages Mr. Musk is accruing from his current situation may never be fully unveiled, and this lack of transparency is intentional and perilous.”
Following the release of the memo, Sen. Richard Blumenthal, the committee’s ranking member from Connecticut, has directed letters to five companies governed by Musk — SpaceX, Tesla, Neuralink, The Boring Company, and xAI — requesting details regarding the federal investigations they encountered before Trump took office.
Finance Newso has sought comments from these companies regarding the situation.
The letters additionally demand a summary of measures each company has undertaken to maintain a separation between Musk’s governmental engagements and those investigations. Blumenthal has requested responses by May 11.
The White House strongly dismissed any assertions suggesting Musk has exploited his governmental role for personal or financial profit, categorically labeling such claims as “entirely false and defamatory.”
White House communications director Steven Cheung remarked that Blumenthal “is evidently suffering from a debilitating and uncurable case of Trump Derangement Syndrome that has impaired his judgment,” according to a statement issued.
