Tech billionaire Elon Musk and his numerous companies could avoid more than $2.37 billion in potential legal liability as a result of his influential role in the federal government, a new Senate report alleges.
The report, published Monday by the Democratic staff for the Senate Homeland Security permanent subcommittee on investigations, found Musk and his companies faced at least 65 "actual or potential" actions from 11 federal agencies and at least $2.37 billion in potential liability as of Inauguration Day.
"The nature of Mr. Musk’s businesses, as well as their substantial earnings from government contracts, mean that he is deeply entangled in the regulatory functions of the government he is now empowered to shape," the report stated. "President Trump could not have chosen a person more prone to conflicts of interest."
Musk is leading Trump's so-called Department of Government Efficiency (DOGE) cost-cutting initiative, which has led to mass layoffs or program spending cuts at numerous federal agencies.
The subcommittee said it conducted a probe of the 65 actions to "understand the financial impact of President Trump's delegation of power on potential liabilities and scrutiny" facing Musk and his companies.
"The goal of this analysis is to estimate the financial liability that Mr. Musk and hiscompanies may stand to avoid through his efforts to gut the federal workforce and exertinfluence over federal agencies," the report stated.
The report claims to reveal the "vast risk Mr. Musk and his companies previously faced and may yet avoid as a result of his newfound influence."
The billions in potential liabilities stem from actions against his electric vehicle manufacturing company Tesla, aerospace firm SpaceX and Neuralink, his neurotechnology company.
Neuralink and Tesla are accused of making false or misleading statements about some of their product features, while SpaceX allegedly failed to follow rocket launch requirements in 2023, according to the report.
Neuralink is also facing action for allegedly violating the Animal Welfare Act, while Musk's construction firm The Boring Company faces citations from the Occupational Safety and Health Administration (OSHA).
The Hill reached out to the four companies for comment.
Some of the agencies behind the regulatory actions are the same ones facing cuts and drastic changes as a result of DOGE, the lawmakers pointed out.
"The through line connecting many of Mr. Musk’s decisions appears to be self-enrichment andavoiding what he perceives as obstacles to advancing his interests," the memo stated. "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 subcommittee's ranking member, Sen. Richard Blumenthal (D-Conn.), sent letters to the four companies along with Musk's artificial intelligence (AI) company xAI, asking for information about the federal investigations that were active on January 20.
Musk's "demonstrated influence over senior leaders has enabled him to terminate or marginalize officials willing to challenge his authority. His threatened retaliation may intimidate many others," Blumenthal wrote in his letter to Tesla.
White House Communications Director Steven Cheung fiercely denied the claims of the report on Monday.
“Mr. Musk has never used his position for personal or financial gain, and any assertion otherwise is completely false and defamatory," Cheung wrote in a statement to The Hill.
Democratic lawmakers have repeatedly sounded the alarm over Musk's compliance with conflict of interest, ethics and reporting requirements. Amid mounting scrutiny and backlash against his firms, notably including Tesla, Musk said last week that he plans to spend less time on the DOGE efforts by the end of May to focus on his other companies.
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