The Senate Permanent Subcommittee on Investigations alleges Elon Musk could avoid at least $2.37 billion in potential legal financial liability because of his influence over government agencies and federal workforce cuts through the administration’s Department of Government Efficiency.
The 44-page memo alleges that with “sweeping access to America’s confidential and sensitive data” through DOGE, “Mr. Musk and his companies stand to gain a competitive advantage unrivaled by the worst insider trading.”
“The through line connecting many of Mr. Musk’s decisions appears to be self-enrichment and avoiding what he perceives as obstacles to advancing his interests,” the memo alleges. “Mr. Musk’s position may allow him to evade oversight, derail investigations, and make litigation disappear whenever he so chooses—on his terms and at his command.”
As of Trump’s inauguration, Musk and his companies were subject to at least 65 actual or potential actions by 11 different federal agencies, the memo says.
Sen. Richard Blumenthal, D-Conn., the subcommittee’s ranking member, sent letters to the five companies owned by Musk — SpaceX, Tesla, Neuralink, The Boring Company and xAI — facing oversight action by the federal government, asking each to provide information on all federal investigations, litigation or regulatory proceedings; a detailed explanation of measures taken to prevent Musk’s work from affecting those matters; and all nonpublic agency information concerning those matters that may have been given to Musk or the company.
“By depleting and downsizing oversight bodies through widespread firings, funding cuts, and disruptive directives, DOGE may enable Mr. Musk’s companies to avoid legal accountability,” Blumenthal writes.
Musk’s companies and a representative for DOGE did not immediately respond to NBC News’ request for comment on the memo.
White House Communications Director Stephen Cheung said in a statement that Musk “has never used his position for personal or financial gain, and any assertion otherwise is completely false and defamatory.” Referring to Blumenthal, he added, “Dick is clearly suffering from a debilitating and uncurable case of Trump Derangement Syndrome that has wilted his brain to the point that he’ll continue to peddle lies like he has with his fabricated service record in Vietnam.”
The memo says Musk’s alleged $2.37 billion potential financial exposure from federal investigations and litigation spans several agencies, including issues such as alleged racial harassment at Tesla’s factory in Fremont, California; alleged discriminatory hiring practices by SpaceX; alleged false or misleading statements about autopilot and self driving features and alleged failure to disclose solar panel risks to shareholders by Tesla; and alleged misleading statements about product rusks and Animal Welfare Act violations by Neuralink.
The memo calls on Trump, executive departments and regulatory agencies to take “coordinated action to address Elon Musk’s threat to the integrity of federal governance,” including responding to Congressional requests related to Musk’s “federal entanglements,” directing all relevant agencies to review contracts and communications with Musk’s to determine whether appropriate measures were or are are in place to prevent undue influence, and initiating independent audits of all major government contracts and awards to Musk’s companies.
“No one individual, no matter how prominent or wealthy, is above the law,” the memo concludes. “Anything less than decisive, immediate, and collective action risks America becoming a bystander to the surrender to modern oligarchy — public power in private hands.”
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