Billionaire and Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk could potentially dodge over $2 billion in financial liabilities due to his sway over the U.S. government, according to a report by Senate Democratic committee staffers.
What Happened: Musk’s “Department of Government Efficiency” (DOGE) has driven major changes in Washington, with President Donald Trump supporting Musk’s push for cuts. On the day of Trump’s inauguration, Musk’s companies — including SpaceX, Tesla, Neuralink, The Boring Company, and xAI — were dealing with at least 65 “actual or potential” regulatory or enforcement actions from 11 federal agencies, posing a potential liability of at least $2.37 billion.
Included in this is $1.19 billion in liabilities for Tesla over allegations of misleading statements regarding its autopilot and self-driving capabilities. Neuralink may also be liable for up to $281 million due to claims of misrepresenting the risks associated with its products.
In reaction to the 44-page memo, Sen. Richard Blumenthal (D-CT) has asked for information from the five Musk-led companies on the federal investigations they faced before Trump’s inauguration. The White House has firmly denied any claims that Musk has leveraged his government role for “personal or financial gain,” stating “any assertion otherwise is completely false and defamatory.”
Tesla did not immediately respond to Benzinga’s request for comment.
Why It Matters: The DOGE has found itself at the center of debate several times. Earlier this month, the House Democrats expressed concerns about DOGE, alleging that it was building a cross-agency master database that could potentially compromise privacy and national security.
Musk faces conflict of interests with several agencies, including the FAA, which oversees SpaceX, and the NHTSA, which is investigating Tesla and recently saw key self-driving experts fired.
Overseen by Musk, the department has reportedly saved $160 billion by eradicating wasteful government spending. However, the same report highlighted that DOGE’s actions could cost taxpayers up to $135 billion in the same fiscal year, excluding the costs of defending multiple lawsuits against DOGE’s actions or the estimated loss in tax collections due to IRS staff reductions.
Meanwhile, during the recent Tesla conference call, Musk announced plans to dedicate more of his time to Tesla, starting next month. Musk stated, “I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so.”
He further added, “Starting next month, I’ll be allocating far more of my time to Tesla.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
