The Senate Everlasting Subcommittee on Investigations alleges Elon Musk might keep away from at the least $2.37 billion in potential authorized monetary legal responsibility due to his affect over authorities companies and federal workforce cuts by way of the administration’s Division of Authorities Effectivity.
The 44-page memo alleges that with “sweeping entry to America’s confidential and delicate information” by way of DOGE, “Mr. Musk and his firms stand to realize a aggressive benefit unequalled by the worst insider buying and selling.”
“The by way of line connecting lots of Mr. Musk’s selections seems to be self-enrichment and avoiding what he perceives as obstacles to advancing his pursuits,” the memo alleges. “Mr. Musk’s place might enable him to evade oversight, derail investigations, and make litigation disappear each time he so chooses—on his phrases and at his command.”
As of Trump’s inauguration, Musk and his firms had been topic to at the least 65 precise or potential actions by 11 totally different federal companies, the memo says.
Sen. Richard Blumenthal, D-Conn., the subcommittee’s rating member, despatched letters to the 5 firms owned by Musk — SpaceX, Tesla, Neuralink, The Boring Firm and xAI — dealing with oversight motion by the federal authorities, asking every to supply data on all federal investigations, litigation or regulatory proceedings; an in depth rationalization of measures taken to forestall Musk’s work from affecting these issues; and all nonpublic company data regarding these issues which will have been given to Musk or the corporate.
“By depleting and downsizing oversight our bodies by way of widespread firings, funding cuts, and disruptive directives, DOGE might allow Mr. Musk’s firms to keep away from authorized accountability,” Blumenthal writes.
Musk’s firms and a consultant for DOGE didn’t instantly reply to NBC Information’ request for touch upon the memo.
White Home Communications Director Stephen Cheung stated in a press release that Musk “has by no means used his place for private or monetary achieve, and any assertion in any other case is totally false and defamatory.” Referring to Blumenthal, he added, “Dick is clearly affected by a debilitating and uncurable case of Trump Derangement Syndrome that has wilted his mind to the purpose that he’ll proceed to hawk lies like he has along with his fabricated service document in Vietnam.”
The memo says Musk’s alleged $2.37 billion potential monetary publicity from federal investigations and litigation spans a number of companies, together with points corresponding to alleged racial harassment at Tesla’s manufacturing facility in Fremont, California; alleged discriminatory hiring practices by SpaceX; alleged false or deceptive statements about autopilot and self driving options and alleged failure to reveal photo voltaic panel dangers to shareholders by Tesla; and alleged deceptive statements about product rusks and Animal Welfare Act violations by Neuralink.
The memo calls on Trump, government departments and regulatory companies to take “coordinated motion to handle Elon Musk’s menace to the integrity of federal governance,” together with responding to Congressional requests associated to Musk’s “federal entanglements,” directing all related companies to evaluate contracts and communications with Musk’s to find out whether or not acceptable measures had been or are are in place to forestall undue affect, and initiating unbiased audits of all main authorities contracts and awards to Musk’s firms.
“Nobody particular person, irrespective of how distinguished or rich, is above the regulation,” the memo concludes. “Something lower than decisive, quick, and collective motion dangers America turning into a bystander to the give up to trendy oligarchy — public energy in personal palms.”
