Elon Musk and several of his companies could potentially sidestep over $2 billion in regulatory liabilities due to his influential role in a little-known federal office under the Trump administration, according to a new Senate report.

The report, released by Democratic staff on the Permanent Subcommittee on Investigations within the Senate Committee on Homeland Security and Governmental Affairs, outlines a broad pattern of conflict of interest and regulatory evasion tied to Musk’s position as head of the Department of Government Efficiency (DOGE) an advisory unit formed during the previous administration.

$2 Billion in Potential Liabilities

Investigators reviewed 65 actual or potential regulatory actions involving Musk-linked firms across 11 federal agencies. Financial liability estimates were available for 45 of those cases and total more than $2.37 billion. The report indicates that Musk’s direct involvement in DOGE may have allowed his companies to delay, downplay, or avoid investigations and penalties.

Among the most serious of the potential liabilities:

• Tesla could face $1.19 billion in fines, largely tied to allegations that the company misled consumers and regulators about the safety and capability of its Autopilot and Full Self-Driving features. The National Highway Traffic Safety Administration (NHTSA) is currently reviewing these claims. NHTSA.gov
• Neuralink, Musk’s neurotechnology firm, could be liable for $281 million due to failure to adequately disclose risks associated with early human trials. The Food and Drug Administration (FDA) approved a limited human trial in 2023 but warned of data irregularities and insufficient transparency. FDA.gov
• SpaceX may face over $630,000 in fines tied to workplace safety and environmental violations, primarily from the Occupational Safety and Health Administration (OSHA) and the Environmental Protection Agency (EPA). OSHA.gov, EPA.gov

While none of the liabilities have yet resulted in final enforcement actions, the report warns that DOGE’s opaque operations and Musk’s central role raise serious ethical concerns.

DOGE and Conflict of Interest

The Senate report criticizes the Trump administration’s lack of transparency around the Department of Government Efficiency. While DOGE was originally pitched as a “lean innovation task force,” its actual scope and authority remain unclear, and its existence was never formally disclosed in the Federal Register.

The authors argue that placing a major federal contractor — such as Musk — in charge of a government efficiency agency without proper oversight presents an unprecedented conflict of interest.

“There is a real and ongoing risk that Musk used DOGE to shield his companies from regulatory scrutiny while promoting policies that directly benefitted his commercial ventures,” the report states.

Democratic senators are calling for the Department of Justice and the Office of Government Ethics to open formal investigations into Musk’s activities during his tenure at DOGE. OGE.gov

Musk’s DOGEcoin Lawsuit Dismissed

Separately, Elon Musk and Tesla scored a legal victory in August 2024 when a federal judge dismissed a high-profile lawsuit accusing them of manipulating the cryptocurrency Dogecoin.

U.S. District Judge Alvin Hellerstein ruled that Musk’s public endorsements and humorous tweets about Dogecoin including changing Twitter’s logo to the Doge meme in April 2023 were not legally actionable. The investors had claimed Musk orchestrated a scheme that inflated the token’s value by over 36,000%, resulting in massive losses when the price later collapsed.

The $258 billion lawsuit, which had been amended four times, was ultimately dismissed on the grounds that Musk’s statements were aspirational, not factual.

Musk’s legal team argued that the case was “a work of fiction,” asserting that the billionaire’s tweets and memes were part of his persona, not market manipulation strategies.

Tesla and DOGE: Stock and Market Snapshot

Despite the ongoing scrutiny, Musk’s companies continue to perform steadily in financial markets. As of April 29, Tesla (TSLA) shares were trading at $285.88, up 0.37% on the day. Meanwhile, Dogecoin (DOGE), the meme-inspired cryptocurrency often linked to Musk, saw a modest decline of 0.83%, priced at $0.179.

FINAL THOUGHT

The Senate report has reignited calls for stricter ethics rules governing private-sector leaders who serve in federal roles, especially when their companies are under active regulatory review.

“This isn’t just about Elon Musk it’s about a broader system that allowed one of the world’s most powerful businesspeople to potentially rewrite the rules to his own benefit,” said Sen. Richard Blumenthal (D-CT), who has called for emergency hearings.

The White House has yet to issue a statement, but sources inside the Office of Management and Budget say internal reviews of DOGE’s structure and function are underway. WhiteHouse.gov/omb