- Senate Democrats accuse Elon Musk of using his DOGE government ties to dodge over $2 billion in penalties.
- A May 11 deadline looms as lawmakers demand answers from Musk’s companies.
Elon Musk is under fire again—this time from the U.S. Senate. A scathing new report from Senate Democrats accuses the billionaire of using his influence in Washington and ties to the now-defunct Department of Government Efficiency (DOGE) to erase investigations, duck regulatory scrutiny, and potentially dodge more than $2 billion in liabilities.
According to the 44-page memo released Monday, Musk’s companies—Tesla, SpaceX, Neuralink, The Boring Company, and xAI—faced at least 65 enforcement actions as of Donald Trump’s inauguration. The potential penalties totaled $2.37 billion, with Tesla alone accounting for $1.19 billion tied to alleged misrepresentations of its Autopilot features. Neuralink, meanwhile, faced penalties for safety violations and alleged mistreatment of animals.
Also read: TRON’s JST Token Poised for Explosive Growth: Could It Be the Next AAVE or MKR in DeFi?
Senator Richard Blumenthal, who chairs the Senate’s Permanent Subcommittee on Investigations, is demanding answers from all five companies by May 11. His office alleges Musk exploited government connections to delay or dismiss critical probes and “crush any roadblocks to his wealth-building empire.”
The Democrats’ memo alleges that Musk didn’t act alone—his involvement with DOGE, a government initiative under Trump’s administration aimed at streamlining operations, allegedly morphed into a personal shield against legal consequences. The report suggests Musk’s exit from DOGE wasn’t a coincidence, but a strategic move to avoid deepening scrutiny.
Blumenthal wants companies to disclose all investigations they faced before Trump’s presidency and prove DOGE wasn’t used to interfere. With just weeks to respond, the pressure is on Musk’s empire to come clean.
The Trump administration and Musk’s allies have denied any wrongdoing. A White House spokesperson called the claims “completely false and defamatory.” Trump communications director Steven Cheung went further, mocking the report and calling Blumenthal’s concerns a product of “Trump Derangement Syndrome.”
But Senate Democrats aren’t laughing. They argue Musk’s control was anything but accidental—it was deliberate and precise. They’re not just after headlines; they want documentation and accountability.
If the companies don’t respond, the Senate has signaled it’s prepared for a full-scale confrontation. The coming weeks could force Musk to answer for more than rockets and robots—they could determine whether his empire was built on innovation or influence.
