Musk's corporate empire may face billions in penalties: Here's why
What's the story
A new report from Senate Democrats has revealed that Elon Musk and his businesses could potentially face legal liabilities amounting to $2.37 billion.
The report, released by Democratic members of the Senate Homeland Security Committee's Permanent Subcommittee on Investigations, examines Musk's various conflicts of interest through his role with his self-proclaimed "Department of Government Efficiency" (DOGE).
It warns that he may leverage his influence to evade legal responsibilities.
Legal scrutiny
Report details potential legal actions against Musk
The Senate report details 65 current or potential legal actions against Musk across 11 different agencies.
It estimates the financial liabilities that Musk and his businesses—Tesla, SpaceX, and Neuralink—could face in 45 of these cases.
Since Donald Trump's re-election last year and Musk's appointment as head of DOGE in January, there have been fears he could use his power to fire regulators and stop probes into his companies.
Financial ramifications
Musk's potential liabilities detailed in Senate report
The subcommittee's report details the potential liabilities Musk could face, including an estimated $1.19 billion in fines for Tesla over allegations of making false or misleading claims about its autopilot and self-driving features.
The report notes that the $2 billion-plus figure does not include investigations the Trump administration may opt not to pursue, or potential contracts Musk's companies could win due to his administration position.
Oversight demands
Senate report calls for stronger oversight against Musk
The Permanent Subcommittee on Investigations, a bipartisan group with a Republican majority and Democratic minority, has urged Trump, executive departments, and regulatory agencies to impose stricter oversight on Musk.
The report suggests allowing independent audits of major contracts awarded to companies associated with Musk.
It emphasizes that "No one individual, no matter how prominent or wealthy is above the law," warning that anything less than immediate action could lead America to become a modern oligarchy.