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Recent findings from the Democratic staff of the Senate Permanent Subcommittee on Investigations suggest that Elon Musk’s unique governmental role relating to DOGE could lead to an avoidance of over $2.3 billion in fines and liabilities. This estimate encompasses potential repercussions from federal investigations, litigation, and regulatory actions.
The 44-page memo paints a critical picture, stating, “Since his appointment, Mr. Musk has taken a chainsaw to the federal government with no apparent regard for the law or for the people who depend on the programs and agencies he so blithely destroys… 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.”
Investigators highlighted that as of January 20, Musk and his companies faced at least 65 actual or potential actions from 11 federal agencies. The memo provides estimates for 40 of these actions across eight agencies, arriving at a total of $2.37 billion.
Specific significant liabilities identified include: $1.19 billion linked to Tesla’s purportedly false or misleading claims about its autopilot and full self-driving features; $633,009 in fines from SpaceX related to breaches of rocket launch protocols in 2023; and $713,114 in fines stemming from 29 citations issued by the Occupational Safety and Health Administration (OSHA) against SpaceX, Tesla, and The Boring Company. Additionally, Neuralink faces a potential liability of $281 million due to allegations of misleading statements regarding product risks.
It’s worth noting that the $2.37 billion total does not factor in several actions from the National Labor Relations Board against SpaceX and Tesla, as well as multiple investigations by the National Highway Traffic Safety Administration concerning Tesla’s autonomous technology.
The memo asserts that while the $2.37 billion figure is a conservative estimate, it significantly underrepresents the potential advantages Musk may reap from avoiding legal risks due to his government position. Beyond 25 pending matters yet to be quantified, Musk and his companies might save millions—if not billions—by sidestepping the expenses and disruptions associated with legal challenges and mandated reforms. Furthermore, the memo states that the total does not account for the substantial financial opportunities Musk could pursue, including new contracts or competitive advantages through insights gained on rival companies.
Senator Discusses Musk’s Conflicts of Interest
In light of these revelations, Senator Richard Blumenthal (D-Conn.), the ranking member of the subcommittee, has reached out through letters to Tesla, SpaceX, xAI (which includes X), Neuralink, and The Boring Company to address the findings and their implications.
Source
arstechnica.com