Senate report reveals Elon Musk’s fraudulent actions with DOGE leading to $2.4B in losses

Elon Musk’s vast business empire, including SpaceX, Tesla, Neuralink, xAI, and the Boring Company, may benefit from the Trump-backed Department of Government Ethics (DOGE) by potentially avoiding over $2.37 billion in legal liabilities. Despite being tasked with leading the cost-saving and data-analytics DOGE initiative, Musk has maintained significant control over his companies, leading to concerns about conflicts of interest and regulatory oversight.

A recent Senate report highlights Musk’s failure to separate himself from his businesses since becoming a special US government employee. As head of DOGE, Musk has been accused of prioritizing self-enrichment and circumventing obstacles to advance his personal interests, raising concerns about ethical integrity within the government. Democratic Senators have drawn parallels between Musk’s behavior and insider trading, citing sudden dismissals of lawsuits against SpaceX and resignations prompted by Musk’s influence as evidence of potential corruption.

The Senate Committee on Homeland Security and Governmental Affairs’ Permanent Subcommittee on Investigations estimates that Musk’s companies face potential financial liabilities amounting to $2.37 billion across 40 enforcement actions involving 11 federal agencies. These actions range from alleged violations of the Animal Welfare Act at Neuralink to compliance issues with Autopilot capabilities at Tesla and FAA launch requisites at SpaceX. Additionally, there are ongoing investigations into various matters, such as retaliation claims at SpaceX and Tesla and NHTSA inquiries into Tesla’s self-driving technology.

The committee emphasizes that the $2.37 billion figure is a conservative estimate and may not fully capture the economic benefits Musk could gain from avoiding legal risks, such as litigation expenses, remediation costs, and competitive advantages derived from intelligence on rivals. Senator Richard Blumenthal has called for immediate action to address Musk’s potential conflicts of interest and access to sensitive government information through DOGE, urging Musk’s companies to provide detailed reports on federal investigations and measures taken to prevent interference by DOGE activities.

Despite inadequate cooperation from Musk’s businesses, the Senate committee stands by its findings and emphasizes the importance of holding individuals, regardless of prominence or wealth, accountable to the law. The lack of response from Musk and his companies raises further questions about transparency and accountability in the context of government oversight and regulatory compliance. The report concludes that swift and decisive action is necessary to prevent the consolidation of power in the hands of a few, safeguarding the principles of democracy and regulatory integrity.