A new report from the Senate Permanent Subcommittee on Investigations reveals that Elon Musk and his companies could potentially avoid more than $2.37 billion in liabilities through his position leading the Department of Government Efficiency.
The Democratic committee staff report, released Monday, details how Musk’s role in the Trump administration creates significant conflicts of interest, as he oversees federal agencies that have active investigations into his businesses. At the time of Trump’s inauguration in January, Musk’s companies faced at least 65 “actual or potential” actions from 11 different federal agencies.
The report outlines specific cases, including a Department of Justice investigation into Tesla regarding allegedly misleading statements about its self-driving technology, which could result in penalties of $1.19 billion. Another major liability stems from an EEOC lawsuit against Tesla alleging racial harassment at its Fremont facility, potentially costing $462 million.
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A DOJ case against SpaceX for discriminatory hiring practices against refugees was abruptly dismissed in February, shortly after Trump took office, allowing the company to avoid potential penalties of $46.1 million.
The Senate report highlights how agencies overseeing Musk’s businesses have been weakened since January. DOGE staff reportedly cut 30 workers from the National Highway Traffic Safety Administration, many of whom evaluated automated driving safety. Meanwhile, Catherine Eshbach, who previously represented SpaceX as an attorney, was appointed to lead the Office of Federal Contract Compliance Programs.
“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,” the report said.
The document concludes by calling for the executive branch to respond to Congressional information requests, direct agencies to review contracts with Musk-affiliated companies, and initiate independent audits of major contracts, particularly those with the Department of Defense and NASA, which total over $10 billion.
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